The price of Australia's 62% Fe grade iron ore fines delivered to China hiked by US$0.2 to US$112.8 yesterday (May 7), reaching the highest point since July 2024, although the pace of growth slowed after an initial post-holiday surge. This growth represented a 5.9% increase since the start of 2026, driven by consistent demand from Chinese steel mills and high molten iron output.

Chinese infrastructure projects and post-holiday restocking by downstream industries keep consumption levels strong. Domestic steel price increases have moderated, but market inventories continue to drop. High capital inflows into the futures market also provide price support. Market participants anticipate that iron ore will fluctuate at these growing levels as supply and demand dynamics remain strong for the short term.