Iron ore prices continue to plummet as Chinese demand disappoints, leading to an increase in inventories. The steelmaking material has experienced a nearly 25% decline from its peak in early January, reflecting the ongoing challenges faced by China’s real estate and manufacturing sectors.
After a predicted year-end rally, the price completely reversed, nearing $110/ton, a level not seen since August.
The supply side is strong, with major iron ore producers, including Vale SA (NYSE:VALE), Rio Tinto Ltd. (OTCPK: RTNTF), BHP Group Ltd (NYSE:BHP), and Fortescue Ltd. (OTC:FSUMF) achieving 1.12 billion metric tons in 2023 — an increase of 1.7% in 2023 compared to the year before. Most producers raised production and shipment guidance for this year, contributing to further price pressure.
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The National People’s Congress ...