Australia's iron ore (62% Fe, CFR China) increased by US$1.1 to US$104.3 on March 27. Following a strong surge yesterday, iron ore has risen by US$0.85 this month, reflecting a 0.82% increase. Since the beginning of the year, it has gained a total of US$3.7, up by 3.67%.

Despite the continued weakness in China's steel market, daily molten iron production climbed to 2.36 million tons, the highest level this year. Meanwhile, iron ore imports in the first two months declined significantly compared to the same period a year ago, and port inventories fell, fueling a sharp rise in iron ore prices.

Market participants pointed out that while end-user demand for steel in China remains sluggish, the volume of construction steel trading improved. Although some steel mills cut production and replenish inventories only as needed, iron ore prices are expected to remain supported as long as molten iron production stays high.