The price of Australia's 62% Fe grade iron ore fines bound for China slightly dropped by US$0.50 to end at US$101.35 per ton yesterday (July 16), retreating from a one-month peak.

Despite this dip, prices held above the US$101 level, maintaining a 1.25% increase for July. This represents a recovery from the 4.5-month low of US$99.25 recorded on July 3.

A 4.3% expansion in China's second-quarter GDP, down from the first quarter to a 3.5-year low, dampened domestic steel markets. This economic deceleration, coupled with reduced crude steel and finished steel output in early July, weighed on iron ore demand. Port stockpiles in China continue to grow, and market participants predict range-bound trading due to weak seasonal demand and high temperatures.