Iron ore prices rose significantly yesterday (May 6, 2026), surpassing the US$112 level. The price of Australia's 62% Fe grade iron ore fines destined for China rose by US$2.30 to reach US$112.60, the highest level since July 2024. This hike was due to positive macroeconomic factors and rising energy tensions, which increased Chinese coal demand and lifted market sentiment.

Steel prices moved upward in tandem with raw materials as capital flowed into the sector. Iron ore prices have grown by 5.7% so far this year, but market participants point to a supply-demand imbalance.

In spite of strong cost support, China's crude steel output dropped by 4 million tons during the first four months of 2026. It was expected that iron ore would fluctuate at these increased levels in the near term rather than maintain a steady growth.