Iron ore prices rose slightly last Friday (August 8), moving closer to the US$101 level. Despite continued weakness in the Chinese steel market, iron ore prices were supported by a repeated decline in global shipments and a lack of significant downward pressure on molten iron production in China.

The CFR price of 62% Fe grade iron ore fines from Australia to China had a small increase of US$0.1, reaching US$100.85/ton and staying above the US$100 level for the fifth consecutive day. This upward movement resulted in a US$2.05 growth for the week, or 2.07%, turning its weekly performance positive after a week of decline.

Market participants said the supportive factors like low supply pressure, high operating rate of the Chinese mills, and improved spot transactions were expected to make the iron ore price fluctuate at a high level in the short term.