Australia's iron ore (62% Fe, CFR China) price on March 6 increased by US$0.65 to US$104. Iron ore prices extended gains on the 6th, with prices rising a total of US$2.3 so far this month, an increase of 2.26%. While the stimulus signals released during China’s Two Sessions were weaker than market expectations and spot steel prices remained subdued, a report by China Mineral Resources Group (CMRG) showed that several traders reduced new seaborne iron ore cargoes from BHP. The report prompted the market to evaluate the potential impact on seaborne supply and China’s procurement patterns, supporting the rise in iron ore prices.

A slight decline in imported iron ore inventories at Chinese steel mills also provided support to the market. However, in terms of supply and demand fundamentals, increased shipments from Australia and Brazil led to rising inventories at Chinese ports. Meanwhile, environmental production restrictions also weakened demand. Market participants expect iron ore prices to fluctuate in the short term.