Australia's iron ore (62% Fe, CFR China) price on March 10 slightly increased by US$0.1 to US$106.35. China’s ferrous futures markets declined across the board, while spot steel prices remained weak. However, hot metal output continued to stay at a high level, supported by favorable macroeconomic policies.

Authorities, including the National Development and Reform Commission, released the second batch of special bond funds for the year, totaling CNY62.5 billion, aimed at supporting consumer goods trade-in programs. The policy was expected to boost steel demand from sectors such as automobiles and home appliances, contributing to the stabilization and slight rebound in iron ore prices.

Market participants said easing tensions in the Middle East had reduced the energy risk premium, bringing the steel market’s focus back to fundamentals. On the supply side, increased iron ore shipments led to a more relaxed supply outlook. Although the growth in China’s hot metal output had slowed, steel demand recovery remained sluggish. As a result, iron ore prices were expected to show a volatile trend in the short term.