Australia's iron ore (62% Fe, CFR China) rose slightly by US$0.25 to US$106.5 on February 7, which has hit nearly a 2-month record high since December 13, 2024. The recent hurricane in Australia caused disruptions on the supply side. Meanwhile, steel production in China is recovering at a faster pace post-holiday, with blast furnace operating rates steadily rising and molten iron output increasing, driving continued gains in iron ore prices.

Furthermore, a slight uptick in China's spot steel prices added support to iron ore. In the short term, downward pressure on iron ore has eased, and prices are expected to exhibit a fluctuating trend on the strong side.