Australia's iron ore (62% Fe, CFR China) price on November 26 increased by US$0.85 to US$106.45, which marked a new high since October 31. Despite simultaneous declines in China’s futures and spot steel prices, expectations of another U.S. Federal Reserve interest rate cut and China’s upcoming December Politburo and Central Economic Work Conference strengthened market confidence, lifting iron ore prices.

Market participants said colder weather in China is further weakening already soft demand. They added that planned blast-furnace maintenance at steel mills will reduce iron ore demand. In the short term, the iron ore price is expected to show a volatile trend.