On August 27, Australia's iron ore (62% Fe, CFR China) price increased by US$0.5 to US$101.95, which has remained above the US$100 mark for three consecutive days. After turning upward yesterday, prices have risen by US$3.7 so far this month, an increase of 3.77%. Since the start of this year, prices have gained US$1.35, up 1.3%.

Although China’s steel market continued to face difficulty yesterday, the country’s daily hot metal output stayed above 2.4 million tons. As of August 26th, iron ore inventories at 47 major ports in China declined week-on-week. In addition, the Chinese Yuan appreciated to 7.15 against the U.S. dollar, lowering import costs and pushing iron ore prices higher.

However, market sources noted that Tangshan is strictly enforcing production limits, with reports indicating a 40% cut in blast furnace production from August 31 to September 3. As a result, both the operating rate and capacity utilization rate of steel mills are expected to drop, leading to weaker raw material demand. In the short term, iron ore prices are likely to show a soft and volatile trend.