It was understood that Australian export price of iron ore (62% iron) to China rose by 2% roughly recently. After Chinese government announced new production reduction policy last week, current steel futures market continued to move upwards and supported the spot price of iron ore.
At the same time, due to extreme weather, the increase in electricity consumption in Hebei Province has led to power shortages, forcing steel mills to cut production or stop working for several hours, and also support the steel futures market.
On the other hand, high profit margin of Chinese steel mills has driven global iron ore price to rise. However, the China-US trade war continued to be tense and put pressure on Chinese economic development. Therefore, positive impact of futures market was limited, and iron ore prices were still unsteady.
