Australia's iron ore (62% Fe, CFR China) price on March 13 remained almost flat at US110. Iron ore prices remained at elevated levels despite signs of stabilization in market sentiment following plans for a new round of economic and trade consultations between China and the US in France from the 14th to the 17th.

The talks helped support gains in both China’s futures and spot markets. However, traders showed only moderate purchasing interest, while steel mills mainly bought to meet rigid demand, leading to reduced transaction volumes and causing iron ore prices to edge slightly lower and remain stable.

Shipments from Australia and Brazil declined, but port inventories in China continued to rise, exceeding 179 million tons. At the same time, blast furnace operating rates at Chinese steel mills increased slightly. Nevertheless, the pace of improvement in downstream demand remained slow. Market participants also noted reports in China that BHP’s Newman fines could be added to a restriction list, raising expectations of tighter supply. In the short term, iron ore prices are expected to fluctuate at relatively high levels.