Iron ore prices have risen for three consecutive trading days yesterday (December 30), reaching US$106.75/ton for 62% Fe grade iron ore fines from Australia shipped to China. The price hit a four-week high, mainly driven by the Chinese yuan rising past the 7.0 level against the US dollar. A stronger currency makes imports cheaper for Chinese traders, and Beijing’s new tariff plans focus on increasing domestic demand and high-quality supply.

Although iron ore grew by 6.11% this year, market participants expect near-term price swings. Global shipments from miners are increasing just as Chinese port stocks build up. In addition, several steel mills began year-end maintenance on blast furnaces, keeping immediate demand quiet ahead of the Lunar New Year restocking period.