Australia's iron ore (62% Fe, CFR China) price on April 21 went up by US$0.15 to US$109.5. Iron ore prices remained above the US$109 mark for two consecutive days, reaching a two-week high since April 7.

Favorable policies in China supported continued strength in both futures and spot steel prices. Meanwhile, reduced shipments from Australia and Brazil led to a decline in port inventories in China. Ahead of the Labor Day holiday, steel mills showed restocking demand, further pushing iron ore prices higher.

Market participants said that although the potential for further growth in China’s hot metal output is limited, supportive macroeconomic policies and improved market sentiment contributed to declining steel inventories and a slight recovery in demand. Steel prices are expected to remain firm, while iron ore prices are likely to fluctuate at high levels.