Australia's iron ore (62% Fe, CFR China) price on October 10 hiked again by US$1.7 and closed at US$106.7, which has increased for two consecutive days with a total of US$3.35 and hit one month high since September 9. The price

Iron ore prices continued to climb as China’s spot steel market remained strong and stable, while a slight decrease in Australian shipments led to a drop in global export volumes. In addition, iron ore inventories at Chinese steel mills declined. Although hot metal output edged down, it still stayed above 2.41 million tons, providing further support to iron ore prices.

Market participants noted that China’s suspension of iron ore procurement from BHP bolstered sentiment, offering short-term support to prices. Following the holiday period, Chinese steel mills are expected to replenish inventories; however, narrowing profit margins mean most mills are buying only as needed. Analysts predicted that iron ore prices will likely enter a period of volatility and consolidation in the near term.