Australia's iron ore (62% Fe, CFR China) price on September 9 soared by US$2.75 and closed at US$107, which has hit a six-and-a-half-month record high since February 25. Following the conclusion of China’s military parade, Chinese steel mills resumed operations, keeping hot metal output elevated. At the same time, global iron ore shipments fell from recent highs, with volumes for September 1-7 totaling about 27.56 million tons, down by 8 million tons from the prior week. China’s steel exports in August slowed in growth but still remained at high levels.

Meanwhile, reports indicated that Rio Tinto’s Simandou project in Guinea faces government pressure to establish a local smelter, a move that could restrict exports and tighten supply. Furthermore, expectations of a US Federal Reserve interest rate cut this month have risen sharply.

Analysts noted that China’s construction steel sales exceeded 110,000 tons on consecutive days, showing that seasonal demand improved. However, overall demand recovery remains uncertain, suggesting iron ore will likely stay volatile at high levels.