Iron ore prices have risen for two days in a row. The price is now nearing the US$103/ton level despite weak steel prices in China. The recent price increase was driven by Goldman Sachs raising its fourth-quarter price forecast for iron ore from US$90 to US$95/ton.

On September 3, the CFR price of 62% Fe grade iron ore fines from Australia to China went up by US$0.90, closing at US$102.85/ton. The current increase was also fueled by declining iron ore stockpiles at both Chinese ports and steel mills.

Although demand for steel has not met expectations, market participants expected a potential recovery in iron ore demand following production restrictions in Tangshan.