Australia's iron ore (62% Fe, CFR China) price on September 22 edged up by US$0.1 and closed at US$106.35. After the iron ore price extended gains yesterday, the price has reached its highest level in nearly two weeks since September 10. Since the start of September, the price has risen by US$3.55, or 3.45%. Year-to-date, it was up by US$5.75, or 5.7%. Over the past week, iron ore gained by US$0.85, or 0.8%.

The increase was supported by expectations of policy easing after China’s State Council Information Office held a press briefing where the People’s Bank of China highlighted financial sector achievements, boosting market confidence. Rising steel prices, falling inventories of construction steel, recovering demand, higher hot metal output, and lower port iron ore stocks also contributed to the upward trend.

China’s Ministry of Industry and Information Technology released a two-year steel industry plan stressing price stability and a steady iron ore supply. Market participants said strong early-September demand supported steel prices but warned of potential risks if demand weakens later this month.