Iron ore prices bounced back above US$99 per ton yesterday (July 2), recovering from a four-month low. The price of Australia's 62% Fe grade iron ore rose by US$0.95 to reach US$99.60 per ton, reversing from the previous day's low of US$98.65.

The price bounce happened after China expanded market controls. China Mineral Resources Group (CMRG) instructed some domestic steel mills to stop taking delivery of certain port spot iron ore products from Australia’s Fortescue. This restriction follows similar actions against BHP.

Despite this brief recovery, iron ore remains weak. Prices fell by 6.3% in June, marking three consecutive months of losses. Market participants expect weak, volatile trading ahead. Steel mills face financial losses, demand remains low during the main flood season in July, and lower oil prices have reduced transportation costs.