The price of 62% Fe grade iron ore fines from Australia shipped to China stabilized at US$101.7/ton last Friday (February 27), hitting a new high since February 6 but ending the week with a 4.4% growth. Although the commodity broke a five-week losing run to reclaim the US$100 level, it recorded a second consecutive monthly decline, dropping by 2.9% in February.

Sentiment improved after Shanghai adjusted property purchase restrictions, providing a needed boost to market confidence. However, the growth faces pressure from high port inventories in China and slow post-holiday demand recovery. Also, northern Chinese steel mills face 30% production cuts during the Two Sessions this month for environmental reasons.

Market participants expected price volatility as Australian shipments increase. Future trends depend on the pace of steel mill restocking and actual demand growth after the holidays.