Iron ore prices surged yesterday (July 3), reaching nearly US$96/ton. The CFR price of 62% Fe grade iron ore fines from Australia to China rose by US$1.45 to US$95.9, the highest since June 4. The price has hiked by two consecutive days. The price increase has reached US$2.35 or 2.5% since this month.

Despite Tangshan's emission reduction measures during July 4-15, their impact on iron ore demand is limited. Market sentiment improved following China's anti-involution conference, leading to higher steel futures and spot prices, which in turn drove iron ore prices.

Besides, strong Chinese billet exports and resilient pig iron production also contributed to the rise. With global and Chinese port arrivals declining and steelmakers' iron ore inventories slightly reduced, market participants expected continued strength in the short term.