Australia's iron ore (62% Fe, CFR China) price on March 9 increased by US$0.9 to US$104.9. Iron ore prices climbed to a five-week high, marking the highest level since January 30 this year. After continuing to rise yesterday, prices have increased by a total of US$3.2 so far this month, representing a gain of 2.9%.

Amid China’s Two Sessions, the Ministry of Finance announced last week that total fiscal expenditure will exceed CNY30 trillion for the first time. Newly issued government bonds are set to reach a record CNY11.89 trillion, while central government transfer payments to local governments will increase to CNY10.42 trillion, further strengthening local fiscal capacity.

The announcement boosted market confidence, pushing up China’s ferrous commodity futures and spot steel prices, with iron ore also moving higher. However, profits at Chinese steel mills have declined, and hot metal output has edged down slightly, with average daily production falling below 2.28 million tons. The market expects iron ore prices to fluctuate in the short term.