On September 6, Australia's iron ore 62% Fe, CFR China, increased by US$0.65 to US$91.1. Despite the continued difficulty in China's steel market, steel inventories kept decreasing. Last week, the blast furnace operating rate increased to 77.63%, up by 1.22% from the previous week. Daily hot metal production averaged nearly 2.23 million tons, a rise of 17,200 tons week-on-week, contributing to a rebound in iron ore prices.
Additionally, there are reports that the Chinese government is considering lowering interest rates on existing housing loans to stimulate consumption, which could provide further support for iron ore prices. However, market analysts caution that while some Chinese steel mills have restarted production, the recovery remains slow. Steel prices have yet to stabilize, and the expected strong demand during the peak season remains uncertain. In the short term, iron ore is likely to remain volatile.
