Australia's iron ore (62% Fe, CFR China) price on April 27 went up by US$0.15 to US$109.20. Iron ore prices remained above the US$109 mark for six consecutive days. China’s rising spot steel prices and improving steel mill profits supported high levels of hot metal output, which is approaching historical highs for the same period.

At the same time, disruptions caused by conflicts in the Middle East kept freight rates elevated, despite some recent easing. In addition, reduced shipments from Australia and Brazil contributed to an upward trend in iron ore prices.

However, following consecutive gains in China’s steel prices, demand from downstream end-users remained weak. Meanwhile, April shipments from Simandou significantly exceeded expectations, and steel mills’ restocking activities ahead of the May 1 holiday are nearing completion. Market participants expect iron ore prices to show a fluctuating trend in the short term.