Australia's iron ore (62% Fe, CFR China) on May 28 slightly increased by US$0.2 to US$96.55. Although confidence in the Chinese steel market is gradually weakening, profits of industrial enterprises above a designated size grew by 3% year on year in April, higher than the 2.6% year-on-year growth in March. This indicated that despite trade tensions with the US and ongoing domestic deflationary pressures, the Chinese economy still showed relative resilience. Furthermore, the steel industry's profit in April reached CNY16.92 billion, which helped halt the decline in iron ore prices.

However, market participants stated that the Chinese steel market is currently still in a relatively difficult situation. Overall transactions were average, and with demand entering an off-peak season, there was a lack of momentum for a rebound. Although some steel mills reduced production, the overall output reduction was limited. It was expected that iron ore prices would remain volatile in the short term.