Australia's iron ore (62% Fe, CFR China) price on March 26 hiked by US$2 to US$110.1. Iron ore prices rose sharply after rebounding from a two-week low, supported by supply concerns following disruptions in Australia’s Pilbara region caused by tropical cyclone Narelle. The cyclone led to port closures, raising worries about potential supply interruptions. Meanwhile, steel prices in China remained weak but stable, with limited upward momentum.

Demand recovery in China’s steel market has been slow. Output of the five major steel products declined this week, and the increase in hot metal production has narrowed. At the same time, falling prices of coking coal and coke have reduced support for raw materials. With downstream purchasing largely driven by essential demand, market participants expect iron ore prices to show a fluctuating trend in the near term.