Iron ore reversed its increases yesterday (March 18), closing at US$110.20 per ton for 62% Fe grade iron ore fines from Australia shipped to China. This decline from a 20-month high coincided with a drop in international oil prices and a downward turn in Chinese ferrous futures. Despite this slide, prices remain up 8.35% for the month as market activity recovers from a low of US$97.85 in late February.

The outlook remains strong as Chinese steel mills restart production and downstream construction resumes. While global shipments increased, port arrivals in China fell, resulting in lower steel plant stockpiles.

Market participants expect iron ore to maintain a firm, volatile trend since blast furnace output is expanding faster than electric arc furnace production to meet rising demand for building materials.