Australia's iron ore (62% Fe, CFR China) on July 10 soared by US$2.1 to US$98.1, which broke through the previous high of US$95.9 on July 3, reaching a new one-and-a-half-month high since May 26. Following yesterday’s sharp rise, iron ore has gained a total of US$4.5 in July, with the increase expanding to 4.86%.

Steel futures and spot prices in China surged following the State Council’s issuance of guidelines to accelerate urban renewal initiatives. Simultaneously, Baosteel announced higher pricing in response to the government’s “anti-involution” policy. A decline in global iron ore shipments also contributed to a sharp rise in iron ore prices.

Despite the current weak demand in the Chinese steel market, analysts observed that the momentum for short-term rebounds remains intact. However, the outlook for sustained price increases may be uncertain. Iron ore prices are expected to exhibit a volatile trend in the near term.