Australia's iron ore (62% Fe, CFR China) on June 19 edged up by US$0.15 to US$92.1. The US Federal Reserve has held interest rates steady for four consecutive meetings and is projected to implement two rate cuts later this year. At the same time, the Chinese government announced that CNY162 billion of the CNY300 billion allocated for the consumer goods trade-in program has been allocated, with the remaining funds to be released in an orderly manner. These developments lifted market sentiment and prompted a rebound in iron ore prices.

Despite the rebound, Chinese ferrous futures remain volatile. Spot steel prices are mostly stable with some downward pressure, while ongoing rainy weather in southern China continues to limit end-user demand recovery. As a result, the short-term outlook for the steel market remains largely unchanged, and iron ore prices are expected to continue with fluctuations.