The iron ore on May 29 kept increasing to the US$104 level, which has accumulated an increase of 8% for three consecutive days.

Because of the reaching a tentative agreement to raise the US debt ceiling, good performance on the US GDP in the second quarter and consumer spending, and China’s black metal future rebounding, the spot steel prices went up, which further made iron ore prices go up.

Besides, parts of China’s northern steel mills resumed their production, so the capacity utilization of blast furnaces increased, which would support the iron ore market as well. However, the market was still at a low level. Therefore, the increased trend of iron ore might be limited in the future.