On August 21, Australia's iron ore (62% Fe, CFR China) price surged by US$0.5 to US$100.3, which rebounded from the more than half-month low set on August 4 and climbed back above the US$100 mark just one day later.

US Treasury Secretary Bessent said the United States and China held a perfect dialogue on economic and trade issues, easing concerns over the US' recent tariffs on steel and aluminum derivative products. The comments lifted market sentiment, easing the difficulty in China’s futures steel market, with some spot prices rising. China’s hot metal output stayed above 2.4 million tons, helping iron ore prices rebound after earlier declines.

Market observers noted that steel demand in China remained weak during the off-season, while global iron ore shipments increased. However, expectations for a September recovery, the traditional peak season, remained in place. Although Tangshan will impose production restrictions, iron ore demand is likely to stay soft in the short term, but could rebound later. In the near term, markets are expected to remain volatile and range-bound.