On December 2, Australia's iron ore 62% Fe, CFR China, increased by US$0.9 to US$105.95, which has reached a nearly two-month high since October 8. Last week, iron ore rose by US$4.2, an increase of 4.16%, marking two consecutive weeks of gains. In addition, for November alone, iron ore has totally increased by US$1.2, or 1.15%.

With December approaching, China is preparing to hold the Politburo meeting and Central Economic Work Conference. Market optimism surrounding potential macroeconomic policies has bolstered confidence, fueling continued growth in black commodity futures. This momentum has also pushed spot steel prices higher, further driving up iron ore prices.

However, analysts caution that the short-term recovery in China's molten iron production capacity is constrained. Besides, iron ore inventories at Chinese ports have slightly decreased, but they still remain at high levels, indicating an oversupply in the iron ore market. As a result, iron ore prices are expected to exhibit a fluctuating trend.