On November 14, Australia's iron ore price remained flat and reached US$102.55, which rose by US$1.8 for the week, up by 1.78%. Since the beginning of the year, iron ore has gained US$1.95, an increase of 1.9%.

Expectations for a fourth round of coke price hikes in China strengthened, but steel demand remains weak, leading to slight swings in both futures and spot steel prices. At the same time, more Chinese steel mills are cutting output, and hot metal production is decreasing. Still, the market anticipates mills will replenish iron ore inventories ahead of the Lunar New Year, helping stabilize prices.

According to market participants, earlier softness in iron ore stemmed from expectations of weaker demand and rising supply as the Simandou project moves toward production. This week’s upturn was mainly supported by the People’s Bank of China’s signal that it will maintain a loose monetary policy.

In the short term, steel prices in China are expected to see limited volatility, while inventories at mills and ports continue to rise. Iron ore prices are therefore likely to remain in a fluctuating pattern.