Australia's iron ore (62% Fe, CFR China) price on December 4 was US$106.25. The price has increased by US$5.65 so far this year, up 5.6%. China’s ferrous futures continued their strength, and spot steel prices pulled back after earlier gains. Besides, iron ore port inventories rose, and hot metal output fell. However, the U.S. Federal Reserve interest rate cut offered support.

Market participants said Chinese steel mills recently incurred losses, and strengthened environmental inspections led to more blast-furnace maintenance, which is expected to further reduce hot metal output. At the same time, iron ore import volumes continue to rise. In the short term, the iron ore price is expected to remain volatile.