Iron ore reversed its weekly decline yesterday (March 30), with 62% Fe grade iron ore fines from Australia shipped to China rebounding to US$110.90. This near two-week peak in prices was due to escalating Middle East tensions, which drove up oil and ocean freight expenses.

Strong cost support, combined with a weekly increase in China’s daily molten iron output of 29,400 tons, fueled a surge in restocking as port inventories fell.

Iron ore prices have increased by more than 9% so far this month and by 4.1% since the start of the year. Besides raw material needs, China’s fixed-asset investment is improving, and steel stockpiles continue to drop.

With the April peak season approaching, market participants anticipated a demand recovery, likely keeping prices volatile at these higher levels.