Iron ore prices rose back above US$106/ton yesterday (December 29), reaching a one-week new high. The price of 62% Fe grade iron ore fines from Australia delivered to China rose by US$1.1 to settle at US$106.45, nearing the monthly high of US$106.95. This recovery persists despite poor industrial profit data, as Chinese steel inventories declined for ten consecutive weeks. Furthermore, a reduction in global shipments and lower port arrivals provided additional price support.

In Chinese futures markets, contracts broke through the CNY 700 threshold. Although weak steel demand and rising port stockpiles remain concerns, expectations for post-holiday production restarts keep sentiment positive. Market participants foresee continued price volatility as the market balances lower supply levels against the modest increase in daily molten iron output.