Iron ore prices maintained levels above US$101 as Australia's 62% Fe grade iron ore fines delivered to China increased by US$0.1 to US$101.25 last Friday (September 4), matching an August 31 high and achieving a one-and-a-half-month high. Weekly prices rose by 1.25%, securing a fourth straight weekly gain, bringing the year-to-date decline to 4.9%.

Market sentiment improved after China scheduled 109 major infrastructure projects, strengthening black commodity futures and spot steel prices. Additional support came from declining inventories of five major steel products and a slight rise in hot metal production.

Market participants expect narrow price fluctuations for iron ore in the short term. Although steel prices entered an adjustment phase rather than a downward trend, end-user demand in September remains sluggish, and steel mills continue to experience operating losses.