Australia's iron ore (62% Fe, CFR China) price on March 11 went up by US$0.55 to US$106.2. Iron ore prices broke above the US$106 level, reaching their highest point since January 17 and marking a near two-month high. After extending gains yesterday, prices have increased by a total of US$3.95 over the past five trading days, a rise of 3.86%. So far this month, iron ore has gained US$4.5, up by 4.4%.

Although spot steel prices in China remained weak, black commodity futures strengthened. China’s iron ore imports in the first two months of the year totaled 210 million tons, increasing by 10% year on year and setting a record high for the same period. The data reflects continued strong demand for raw materials from Chinese steel mills, supporting iron ore prices.

Meanwhile, reports indicated that as tensions in the Middle East intensified, several iron ore vessels were redirected from the region to China, increasing supply to the Chinese market by about 1 million tons. Chinese buyers, expecting further price increases, accepted iron ore prices including higher freight costs, providing additional support to the market.

Market participants said the shift could increase supply pressure in China. With imports and port inventories already at historically high levels, concerns remain over whether steel demand will be sufficient to absorb the additional supply, suggesting iron ore prices may fluctuate in the short term.