Iron ore prices rebounded above US$101 per ton yesterday (February 9), rising back from a six-month low. Specifically, the price of 62% Fe grade iron ore fines from Australia shipped to China hiked to US$101.40 per ton, up by US$0.95. This reversal ended a four-week series of losses.

Although Chinese steel prices remain weak and pre-holiday trading has slowed, supply concerns triggered the price jump. A tropical cyclone forced major Western Australian ports, including Port Hedland, to halt loading operations.

However, market participants anticipate limited growth. China’s port inventories have hit a two-year high of 170 million tons, and mill restocking has largely finished. These factors point toward a volatile, sideways market trend in the near term.