Australia's iron ore (62% Fe, CFR China) price on March 10 went up by US$0.75 to US$105.65. Iron ore prices returned above the key US$105 per ton level and reached their highest point in nearly one and a half months since January 30. After extending gains yesterday, iron ore prices have increased by a total of US$3.4 over the past four trading sessions. So far this month, prices have risen by US$3.95, representing an increase of 3.88%.

Although spot steel prices in China weakened yesterday and ferrous futures broadly declined, data from China’s customs authorities showed that iron ore imports in the first two months totaled 210 million tons, up by 10% year on year. Coal imports also increased during the same period, indicating that steel mill production remained at high levels and demand for raw materials stayed strong, supporting the rise in iron ore prices.

Market participants said that iron output in China declined due to environmental production restrictions during the Two Sessions, but production is expected to resume afterward. While iron ore market fundamentals show relatively ample supply, rising freight rates caused by geopolitical conflicts provided additional support to prices. In the short term, iron ore prices are expected to fluctuate with a firm trend.