Iron ore prices surged on May 7, nearing the US$100/ton mark, driven by strong market sentiment following China’s decision to cut its reserve requirement ratio by 0.5 basis points. This move boosted steel prices in China and generated optimism about progress in US-China trade talks. 

As a result, the price of Australian 62% Fe iron ore fines shipped to China rose by US$0.6 to US$99.55/ton, marking the highest level since April 24. Despite this positive trend, the rise in iron ore prices slowed yesterday, and analysts caution that the market could face pressure in the coming weeks. 

May typically marks the beginning of the off-season, with weaker downstream demand and expectations that Chinese steel production may have peaked. Additionally, concerns over the impact of a potential trade war and steel production cuts could limit further gains in the short term.