Australia's iron ore (62% Fe, CFR China) price on March 17 went up by US$1.3 to US$111.35. Iron ore prices climbed to their highest level in one year and eight months since July 5, 2024. After extending gains from the previous session, prices have increased by US$9.655 so far this month, marking a rise of 9.8%. Since the start of the year, iron ore prices have gained US$4.85, with the overall increase widening to 4.55%. Compared with the recent low of US$97.85 recorded on February 23, prices have surged by US$13.5 in less than a month, representing a sharp increase of 13.8%.

Despite mixed movements in China’s ferrous futures and a slight uptick in spot steel prices, market attention remains focused on disruptions linked to tensions in the Middle East. Higher energy and freight costs, along with a broad rise in raw material prices, have pressured steel mills to maintain firm pricing. This has raised expectations of a rebound in steel prices and continued to support iron ore.

On the fundamentals side, global miners have increased shipments, while arrivals at Chinese ports have declined. Meanwhile, port inventories in China have continued to build, even as steel mill inventories have decreased. Molten iron output also edged lower last week. Market participants expect iron ore prices to fluctuate at relatively high levels in the near term.