Japan Chemical Trading Blog
Iron Ore Price Softening
Price of iron ore is in decline. Spot price for iron ore is now less than USD100 per ton — around 30% down from the beginning of this year.
The production of iron and steel has slowed down in China, the world’s largest iron ore consuming nation, due to the stagnation of economic growth in the country while production is increasing in Australia, the world’s top exporter.
The iron ore stock in China has reached a high level and according to Goldman Sachs, from this year to next year, an increase in excess supply is anticipated.
With the decline of the price, the focus should be on whether the high-cost producers in China will be able to continue to operate, and if major producers will revise their plans to expand the production that have already been announced.