Iron ore prices increased for a second consecutive day yesterday (October 28), returning above the US$106 level and reaching a two-week high since October 14.

The price of 62% Fe grade iron ore fines from Australia delivered to China increased by US$0.80 to US$106.25. The rise was primarily driven by better market sentiment resulting from easing US-China trade tensions and continuous steel price increases in China, which were supported by output restrictions in Tangshan due to environmental issues.

However, market participants caution that steel demand in China remains weak and global iron ore shipments are growing. These factors, coupled with lower Chinese hot metal production, could lead to short-term fluctuations or weakness in the iron ore price.