Australia's iron ore price on November 17 surged by US$1.2 and closed at US$103.75, which not only returned to above the key level of US$103, but also reached a one-week high since November 7.

China’s crude steel output in October fell by 12.1% year on year, a decline that helped lift domestic steel prices. While reduced steel production typically impacted iron ore, the market has instead focused on the positive impact of rising steel prices. Recent decreases in iron ore shipments from Australia and Brazil also contributed to a sharp price increase.

Market participants said seasonal demand remains weak and the momentum behind China’s steel price recovery is still uncertain. Steel mill output cuts also led to a drop in hot metal production. With supply still abundant, iron ore prices are expected to maintain a volatile trend in the short term.