On August 11, Australia's iron ore (62% Fe, CFR China) price surged by US$1.4 to US$102.25. The price reached a two-week high since July 25 after continuing its upward trend yesterday. So far this month, the price has increased by a total of US$4, or 4.07%. Year-to-date, it has risen by US$1.65, up 1.64%. Over the past week, the price gained US$2.05, representing a 2.07% increase.

Iron ore price surged as market sentiment was boosted by news of production cuts at steel enterprises in Tangshan and Baosteel’s September price announcement, which opened higher with an expanded increase. Positive performances in China’s July CPI and PPI also contributed to strong gains in China’s ferrous futures, with spot steel prices turning stronger as well, further driving up iron ore prices.

Furthermore, the appointment of President Trump’s nominees to the US Federal Reserve Board indicated a potential for earlier interest rate cuts, further supporting the rise in iron ore prices. Market participants noted that with the impact of production cuts, the gradual strengthening of China’s steel prices, and improved transactions as steel prices climb, iron ore is expected to maintain a relatively strong trend in the short term.