The price of 62% Fe grade iron ore fines from Australia shipped to China rose to US$109.2/ton last Friday (January 9), clinching a second consecutive weekly growth. This 2.5% weekly climb pushed the commodity to its highest level since October 2024. Chinese steel prices weakened, but iron ore found support as daily molten iron output neared 2.3 million tons.

Lower shipments from miners, combined with rising blast furnace restarts, drove the price recovery. In spite of growing port inventories and a seasonal slowdown in construction, steel mills need to replenish stocks to resume operations. Market participants predict iron ore will maintain a high-range volatility as strong production demand offsets the current weakness in finished steel markets.