The price of Australia's 62% Fe grade iron ore fines bound for China rose by US$0.55 to reach US$100.75 per ton last Friday (July 10), hitting a three-week high and maintaining a position above the US$100 level for three consecutive days. This gain lifted the weekly price by US$1.50 (1.5%), ending an eight-week losing slide. The rebound reduced year-to-date losses to 5.34%, recovering from a four-and-a-half-month low of US$99.25 on July 3.

Supply worries drove the recovery despite weak Chinese steel prices. Traders remain anxious about an upcoming strike by BHP iron ore workers and unresolved disputes regarding Chinese purchase limits on Fortescue's Super Special Fines grade of iron ore.

High blast furnace operational rates at Chinese mills provide underlying support. However, steel profits are deteriorating, with only 40% of steel mills remaining profitable, leading to cautious procurement during this weak demand season.