Iron ore prices surged to a two-week high of above US$105/ton level on December 17, regaining ground lost during last week’s decline.

The price of 62% Fe grade iron ore fines from Australia delivered to China rose by US$1.15 to reach US$105.65. This three-day growth was due to improved sentiment after the China Iron and Steel Association (CISA) called for an anti-involution within the industry. Strong increases in coking coal and coke futures also pulled iron ore upward, as the overall ferrous metals complex stabilized.

Despite this recovery, the underlying fundamentals remain complex. Daily molten iron output dropped below 2.3 million tons, and weak domestic steel demand limits further upward momentum. Although macroeconomic policies provide temporary support, the market faces a tug-of-war between rising costs and slowing production.