Iron ore prices turned around yesterday (August 25), rising back above the US$102/ton level. The CFR price of 62% Fe grade iron ore fines from Australia to China rose by US$2.55 to US$102.40/ton, reaching its highest point in over a week.

The price increase was a result of several factors. A coal mine accident in Fujian, China, has renewed expectations of safety inspections, while increased speculation of a September interest rate cut by the US Federal Reserve has fueled a rise in Chinese ferrous futures. This included a more than 6% jump in coking coal, which in turn lifted spot steel prices and drove the iron ore market upward.

In addition, the potential eighth round of price increases for coking coal in China also contributed to the upward momentum for iron ore prices.