The price of Australia's 62% Fe grade iron ore fines shipped to China rose by US$0.4 yesterday (July 15) to reach US$101.85 per ton, which hit a new high since June 17, recovering from the low point of US$99.25 on July 3. This rally narrowed the commodity's year-to-date loss to 4.37%.

Port worker strike plans at BHP and strong Chinese import and export data drove the growth. Market participants estimate the strike will cut shipments by 2 million tons, which is insufficient to alter long-term market balance.

Meanwhile, squeezed profit margins at steel mills limit demand for high-priced iron ore. Consequently, market players anticipate volatile, range-bound prices in the short term.