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news.com.au 19 Nov, 2021 05:30 am

Iron ore price falls to lowest since May 2020 as China curbs steel spending

Iron ore price falls to lowest since May 2020 as China curbs steel spending
The price of iron ore has tumbled again to its lowest level in 18 months as demand from China for the steel making ingredient plummets but in worrying signs, experts warn that it is yet to hit rock bottom.

The price of iron ore has tumbled again to its lowest level in 18 months as demand from China for the steel making ingredient plummets but in worrying signs, experts warn that it is yet to hit rock bottom.20 ($A120) a tonne meaning iron ore is at its lowest price since May 2020.“The price of iron ore has not yet bottomed out,” analysts at Chinese exchange Zhongzhou Futures wrote.” China is the biggest buyer of Australia’s iron ore but its demand has weakened considerably.

Picture: The Daily Telegraph The dramatic decline in iron ore’s price, which hit a record breaking $US233 ($A320) a tonne in May, was initially due to China’s cuts to steel output at 2020 levels, which were introduced around mid-year, said Commonwealth Bank’s mining and energy economist Vivek Dhar.” But steel demand has also played an important role too, especially recently, with little appetite for the commodity meaning iron ore prices could be in for a rough ride.

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