The price of Australia’s 62% Fe grade iron ore fines delivered to China rose to a four-week high of US$110.30 yesterday (May 4), hiking by US$0.55. This upward movement reflected strong market expectations for price rebounds after the May Day holiday. The price has now grown by US$3.80 since the start of the year, an increase of 3.56%.

Several factors supported this price growth. China’s steel inventories decreased for seven consecutive weeks, reducing supply pressures. In addition, high shipping costs and China’s manufacturing PMI staying in expansion territory provide price stability.

Although the off-season approaches, government policies aimed at stabilizing the real estate market contribute to a resilient economic outlook. Market participants expect iron ore to fluctuate at these higher levels in the short term despite seasonal demand changes.