Iron ore prices slightly declined last Friday (September 5), pulling back from a six-month high. The price of 62% Fe grade iron ore fines from Australia to China dropped by US$0.15 to US$104.35/ton. The price has remained at above US$104/ton level for two days. So far this year, the iron ore price has risen by US$3.75, an increase of 3.7%.

Despite a rebound in Chinese steel prices, demand remains weak, which has caused steel product inventories to rise for eight straight weeks. Besides, daily crude steel output in late August fell by 8% month on month to 1.95 million tons, contributing to the drop in iron ore prices.

Market participants said that iron ore shipments from major global producers have increased, and a possible rebound in steel production following the end of output restrictions in Tangshan could boost demand. The short-term price trend for iron ore is expected to be volatile, dependent on future movements in China's steel market.