On July 17, Australia's iron ore (62% Fe, CFR China) kept growing by US$0.9 to US$100, which reached a nearly two-month high since May 22. Following yesterday's continued increase, iron ore has risen by a total of US$5.55 in July, with the gain expanding to 5.9%.

Iron ore prices in China continued to climb as market sentiment improved following recent policy developments. The State Council of China has begun reviewing the implementation of key measures aimed at strengthening the domestic economic cycle. At the same time, a high-level consultation forum was held to discuss strategies for expanding domestic demand. These signals contributed to a more optimistic market outlook, supporting a rebound in steel prices.

The increase in pig iron output by Chinese steel mills further fueled expectations for stronger iron ore demand. Additionally, after the first round of coke price hikes, a second round is anticipated, offering additional support to iron ore prices. Despite a generally weak demand environment in the Chinese steel market, analysts noted that steel mills are not facing significant inventory pressure. As a result, while steel prices are likely to remain volatile in the short term, iron ore prices are expected to enter a phase of fluctuations following their recent gains.