Iron ore prices rebounded yesterday (June 2), stabilizing above US$106 per ton. The price of Australia's 62% Fe grade iron ore fines bound for China rose by US$0.65 to reach US$106.80, recovering from a near four-month low of US$106.15 in the previous day.

In spite of this recovery, prices have remained under the US$107 level for six consecutive sessions, posting a modest year-to-date growth of 0.28%.

Stronger Chinese ferrous futures and high molten iron output drove the turnaround. Decreased shipments from Australia and Brazil, plus the implementation of a fifth round of coke price increases, provided solid cost support.

However, China's May steel PMI fell to 47.9% amid rising inventories and weak seasonal demand, likely confining near-term iron ore movement to a volatile range.