The price of 62% Fe grade iron ore fines from Australia shipped to China rose to US$102.1 per ton on March 2, reaching a new high since February 5. This rise was because Chinese steel mills have finished annual maintenance and are prepared to increase production.

In spite of a 2.9% drop in February, the market started March with growth due to expectations of recovering terminal demand and favorable macro policies. The year-to-date iron ore prices were down by 4.1%. The increase last week was 4.4%.

While high port inventories persist, market participants expect a transition from inventory accumulation to depletion this month. Mandatory restocking by steel mills and rising molten iron output support the current price strength. A short-term volatility was expected owing to actual demand growth.