Iron ore prices edged higher in early Asian trading, but analysts remain cautious on the black metal in the near term.

According to Baocheng Futures, supply-demand dynamics for iron ore have yet to improve. Supply remains elevated, while inventories continue to be heavy, keeping pressure on the market. Although market sentiment has been relatively positive recently, analysts express concern over short-term demand.

On the Dalian Commodity Exchange, the most actively traded January iron ore contract rose 1.1% to CNY 801 per ton in early trade.