Iron ore prices dropped for a second consecutive session on March 24, with 62% Fe grade iron ore fines from Australia shipped to China reaching US$110.1 per ton. This downward trend was due to profit-taking following negotiations between BHP and China Mineral Resources Group, alongside weak domestic steel price growth in China.

Despite these losses, the market remains above the US$110 level, supported by rising Chinese coke prices and Fortescue’s warnings about higher mining costs due to surging diesel prices.

Although the year-to-date growth has narrowed to 3.38%, iron ore has recovered significantly from its February low of US$97.85. Market participants expect that prices will fluctuate at these high levels.