Australia's iron ore (62% Fe, CFR China) on July 16 hiked by US$1.1 to US$99.1, which reached a new nearly two-month high since May 23. After turning upward yesterday, iron ore has increased by a total of US$5.55 in July, with the gain expanding to 5.9%."

The steel market remained challenging following China’s Central Urban Work Conference, yet the nation’s GDP recorded a 5.3% year-on-year growth in the first half of the year. During the same period, Rio Tinto’s second-quarter shipments from Australia’s Pilbara region, the largest iron ore supply base globally, held steady at about 79.9 million tons, slightly under the market estimate of 81.93 million tons. This contributed to the recent increase in iron ore prices.

According to market participants, China’s economic momentum remains present, and overall macro sentiment has not fully cooled. Nonetheless, seasonal demand for steel continues to be weak, while molten iron production is only gradually declining and still remains at a high level. As a result, iron ore prices may see short-term fluctuations.