According to Steel Radar's assessment, iron ore prices, which were recorded at 111.00 USD on April 4, rose to 120.00 USD on April 15. However, on April 17, they saw a slight decrease to 119.00 USD.
The main driving forces behind the increase in iron ore prices are the recovery in the steel market and the expectation that steel producers, the largest consumers in China, will replenish their stocks before the May 1 holiday.
Analysts point out that the increased willingness of factories to resume production, driven by improved margins and recent demand, is likely to keep the demand for ore strong in the near term. Additionally, with the approach of the May 1 holiday, steel producers will need to replenish their raw material stocks. While demand for construction steel may be weak, steel consumption in the manufacturing sector remains robust.
On the Dalian Commodity Exchange, the September iron ore contract rose by 4.25% to 870 120.20 USD per metric ton, the highest level since March 11. Similarly, the May iron ore indicator on the Singapore Exchange reached 115.55 USD per ton, a 5.63% increase, marking its highest level since March 8.
This increase in prices is seen as an indicator of the recovery in the steel market and the expectation of pre-holiday stockpiling in China. Strong demand for ore is expected to continue in the near future.
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