Australia's iron ore (62% Fe, CFR China) price on March 16 hiked by US$1.7 to US$108.455, which not only rebounded above the US$108 mark, but also reached a more than one-week high since April 9.

Iron ore prices increased as China’s first-quarter GDP grew by 5% year-on-year, boosting market confidence and driving a broad rise in ferrous futures. Spot steel prices also moved higher across the board. Meanwhile, crude steel output in early April rose on a month-on-month basis, with improving demand expectations further supporting the sharp increase in iron ore prices.

Market participants said that China’s steel inventories declined again this week, indicating a slight recovery in demand. At the same time, a second round of coke price increases and support from higher raw material costs strengthened steel mills’ pricing stance. Steel prices are expected to remain firm, and iron ore prices are likely to fluctuate at high levels in the short term.