Australia's iron ore (62% Fe, CFR China) price last week increased by US$1.75 (1.64%). China’s spot prices continued to strengthen, while ferrous futures showed mixed movements. Coking coal and coke futures declined, placing pressure on raw materials. At the same time, China’s hot metal output showed signs of peaking. With many steel mills operating near the break-even level, procurement willingness remained weak.

Market participants said China’s steel inventories fell again this week, suggesting a slight recovery in demand. However, the recovery pace remained slow, and inventory levels were still higher than the same period last year. Meanwhile, blast furnace capacity utilization increased, and port inventories declined. Amid a recovery and rebound in domestic prices, iron ore prices are expected to remain stable in the short term.