Australia's iron ore (62% Fe, CFR China) on August 4 increased by US$1.4 to US$100.2, which rose back above the US$100 mark just two trading days later. Although spot steel prices in China continued to weaken, black commodity futures experienced a strong and volatile upward trend. Meanwhile, Chinese steel mills saw improved profits and demonstrated a notably lower willingness to reduce production. Consequently, daily pig iron output in July remained above 2.4 million tons, and port inventory levels decreased, which supported further increases in iron ore prices.

Furthermore, the fifth round of price hikes for coking coal in China also contributed to the iron ore price rally. Market participants indicated that following a cooling of the anti-involution sentiment, the steel market is expected to return to fundamentals. Steel prices are projected to initially decline and then rise in August, while iron ore prices are expected to show short-term fluctuations.