The price of Australia's 62% Fe grade iron ore fines bound for China climbed by US$0.75 to reach exactly US$100 per ton yesterday (July 6), bouncing back from a four-and-a-half-month low of US$99.25 set last Friday. This increase brings the iron ore price back to the US$100 threshold after three sessions below it, ending a continuous eight-week weekly drop.

A combination of factors drove the rebound. Chinese spot and futures steel prices rose together, and rumors regarding sales limits on Fortescue’s Super Special Fines boosted market sentiment.

At the same time, global iron ore shipments dropped by about 1.2 million tons over the week to 33.23 million tons. Lower US employment data also reduced interest rate expectations, weakening the dollar.

A loose supply remains as port inventories grow, meaning near-term prices may fluctuate within a narrow range.