Although the price of 62% Fe grade iron ore fines from Australia shipped to China dropped to US$110.2 on March 31, it closed the first quarter with a hike of 3.47%.

Increased shipments from Australia and Brazil, coupled with falling Chinese steel prices, triggered the late-month decline. However, the commodity surged by 8.35% throughout March, rebounding from a low of US$97.85 on February 23 to stop a two-month downward trend.

Middle East tensions and rising port inventories weigh on the market; however, market participants expect prices to stabilize at high levels. Stronger demand is anticipated as China enters its peak construction season in April. Furthermore, rising energy and freight costs provide a solid price floor, offsetting current supply-side weight.