Iron ore prices rose yesterday (June 23), surpassing US$93/ton, driven by rising steel futures in China and decreased iron ore shipments from major miners. This led to lower arrivals at Chinese ports. Besides, Chinese steel mills had a week-on-week increase in blast furnace capacity utilization and hot metal production, further raising the iron ore price increase.

On June 23, the price of 62% Fe grade iron ore fines from Australia to China rose by US$0.30, reaching US$93.30. The price has risen by three trading days in a row.

Despite weak spot steel prices in China, a decline in Australian and Brazilian iron ore shipments, coupled with falling port arrivals and inventories in China, contributed to the recent rally. However, market participants said that weak steel demand due to the off-season and improved mill profits from lower raw material costs may lead to short-term price stabilization.