Iron ore prices rose back above US$95 yesterday (August 5), rising by US$0.45 to reach US$95.45 for Australia's 62% Fe grade iron ore fines shipped to China.

This turnaround was driven by stabilizing steel prices in China, sharp growth in coking coal futures, and supply disruptions caused by an upcoming Australian BHP's Port Hedland iron ore workers' strike on August 8 and 9.

The increase represented the first price increase this month, narrowing August losses to 1.24%. Although iron ore retains a strong position by holding this vital price floor, market participants expect a weak, fluctuating trend in the short term because low spot trading and reduced hot metal output from steel mill maintenance continue to weigh on raw material growth.