Price volatility will continue to mark iron ore trade
Financial Express Mumbai|January 07, 2022
THE WAY PRICES of the world's second largest seaborne traded commodity, iron ore, behaved during the just ended year will make everyone concerned wary about the 2022 demand and price forecasts for the commodity by global research agencies.
KUNAL BOSE
Price volatility will continue to mark iron ore trade

THE WAY PRICES of the world's second largest seaborne traded commodity, iron ore, behaved during the just-ended year will make everyone concerned wary about the 2022 demand and price forecasts for the commodity by global research agencies. Indian iron ore producers take the pricing cue from the global market and therefore, steelmakers here stay ready to embrace price swings.

Much to the surprise of miners and trade officials, iron ore prices in 2020 yo-yoed from an all-time high of $235.55 a tonne on May 12 to slide to 16-month low of about $85 in November and finally to end the year on China's Dalian commodity exchange at $106.71 for May delivery. Such a roller coaster ride of the steelmaking ingredient was in the first place fuelled by expectation of a strong demand recovery in steel riding principally on infrastructure building in the post global Covid-19 second wave and then a few months thereafter by the Beijing edict that the steel industry must curb emissions resulting in production control. At the end, the commodity lost close to 30% over January 2021 opening price.

Indian miners closely watch all developments relating to iron ore imports and the more recent steel production discipline in China, which buys more than 80% of its ore requirements from foreign countries, mainly from Australia and Brazil, to have a fair idea of price movements. Globally, some 1.5 billion tonne (bt) of the mineral find their way to importing countries but majorly to China by sea.

This story is from the January 07, 2022 edition of Financial Express Mumbai.

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This story is from the January 07, 2022 edition of Financial Express Mumbai.

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