SINGAPORE: Iron ore futures edged higher on Monday, beginning the New Year on a firm note, supported by strong Chinese demand and ongoing supply constraints. The Dalian Commodity Exchange (DCE) and the Shanghai Futures Exchange (SHFE) resumed trading on January 5 after the New Year holiday in China. The most-traded May iron ore contract on the DCE traded 0.76% higher at 795.5 yuan ($113.94) a metric ton, as of 0243 GMT. The benchmark February iron ore contract on the Singapore Exchange rose 0.29% to $105.65 a ton. Chinese iron ore prices are being underpinned by steelmakers restocking ahead of the Lunar New Year holiday in February, while tight domestic supplies are also lending further support. China’s domestic iron ore supply has remained constrained, with several mines limiting output due to environmental protection measures, according to a note from Shanghai Metals Market. Inventories of the five major carbon steel products held by Chinese steel mills fell 1.1% week-on-week to 3.81 million tonnes during December 26–31, consultancy Mysteel reported. Other steelmaking ingredients on the DCE traded down, with coking coal and coke down 1.12% and 1.77%, respectively. Steel benchmarks on the SHFE were mixed. Rebar declined 0.38%, hot-rolled coil traded down 0.49%. Meanwhile, wire rod gained 4.93% and stainless steel firmed 0.65%.