On September 19, Australia's iron ore (62% Fe, CFR China) price hiked by US$1.25 and closed at US$106.25. After iron ore prices surged on September 19, it has reached their highest level in more than a week since September 11. Over the past week, the price rose by US$0.85, or 0.8%. Since the beginning of September, it has gained US$2.2, or 2.14%, and is up by US$4.4, or 4.37%, so far this year.

The increase came as Chinese steel mills stepped up restocking ahead of the October 1 National Day holiday, boosting demand. Mills also resumed more operations, expanding production capacity and lifting hot metal output as steel prices stabilized. These factors combined to drive the jump in iron ore.

Market participants said that although the traditional peak season has begun, China’s steel market remains sluggish, with weak demand and rising global iron ore shipments. Even so, active production by steel mills provided support on the demand side, and prices are expected to show short-term volatility while holding steady overall.