Australia's iron ore (62% Fe, CFR China) price on December 2 slightly went up by US$0.95 to US$106.95, which marked almost a month's high since October 30. Weak U.S. manufacturing data strengthened expectations for another Federal Reserve rate cut on December 10, leading to a weaker U.S. dollar. At the same time, improved market sentiment supported continued increases in China’s futures and spot steel prices and pushing iron ore higher.

The appreciation of the Chinese Yuan also contributed to the rise in iron ore prices. However, December is typically the period for blast furnace maintenance in China, and iron ore shipments from miners usually surge toward the end of the year as they work to meet annual targets, which increases supply pressure. Market participants expect iron ore prices to remain volatile in the short term.