Iron ore prices rose for a third consecutive day yesterday (August 5), trading above the US$100/ton level. The CFR price of 62% Fe grade iron ore fines from Australia to China increased by US$0.8 to reach US$101/ton, a one-week high.

This recent price increase was linked to a rally in China's coking coal futures, which hit their daily limit. Market sentiment was also being lifted by expectations for a demand surge in September, a traditional peak season, and pre-celebration demand for the upcoming military parade.

Market participants believed steel prices have room to increase due to rising raw material costs, and they expected iron ore prices to remain volatile at high levels in the short term.