The price of 62% Fe grade iron ore fines from Australia shipped to China slightly fell by US$0.2, reaching US$108.8/ton yesterday (January 8) after hitting a ten-month high. Although the rally slowed, the decline remained small because Chinese steel mills still need to replenish stocks. Currently, daily molten iron output continues to increase as blast furnaces return to operation after maintenance.

Despite yesterday's drop, iron ore prices stay well above their December lows. Supply has tightened now that miners have finished their year-end shipments, providing a floor for the market.

Market participants see this small decrease as a technical adjustment rather than a trend reversal. With demand rising and supply shrinking, iron ore prices will likely stay strong in the near term.