On September 2, Australia's iron ore (62% Fe, CFR China) price increased by US$0.65 to US$101.95. After increasing yesterday, it has risen by a total of US$1.35 so far this year, an increase of 1.34%.

China’s ferrous metal futures saw only a weak rebound, leading to stabilization in spot steel prices. According to the China Iron and Steel Association, crude steel and steel products output in mid-August both rose month-on-month. As steel mill profits declined, producers opted to cut coal prices instead of reducing output, contributing to the rebound in iron ore prices.

Market sentiment was further lifted by expectations that iron ore demand will strengthen after China’s military parade on September 3, as short-term production restrictions are expected to have minimal impact. However, industry participants noted that actual steel demand in China remains below forecasts. As a result, they anticipate that iron ore prices will experience a volatile trend in the near term.