The price of Australia’s 62% Fe grade iron ore fines delivered to China rose by US$1.25 yesterday (April 20), reaching US$109.35. This price hit a two-week high since April 7.

Geopolitical instability in the Middle East drove up oil and Chinese coking coal futures, while the Chinese government’s plan to allocate CNY 216.8 billion in ultra-long special bonds to support 336 key projects provided additional price momentum.

Furthermore, steel mills began restocking activities ahead of the May 1 holiday. With steel prices remaining strong, market participants expect iron ore to trade with high-level volatility.

After last week's 1.64% gain, the commodity narrowed its monthly decline to 0.77% and currently maintains a year-to-date increase of 2.67%.