Prices
March 24, 2020
CRU: Iron Ore Falls $10 Per Ton on Global Demand Fears
Written by CRU Americas
In the past week, iron ore saw its biggest drop of the year as prices fell by nearly $10 /t. The main reason for the fall was an escalation of Covid-19 cases outside of China, which caused concerns of iron ore demand in key steelmaking regions such as Europe and northeast Asia. At the same time, Australian supply has improved in the absence of further cyclones and all major producers are pushing hard to meet quarterly targets. On Tuesday, March 24, CRU has assessed the 62% Fe fines price at $81.0 /t, a $9.5 /t drop w/w.
In China, economic activities continue to recover and BFs in the country are maintaining a steady utilization rate. However, steel prices have declined in the past week as steel inventories are now being shifted over from mills to traders. Margins remain weak and there are increasing concerns about steel demand from other countries, which is putting Chinese steel exports at risk. Our sources mention that there is currently a wide divergence in views on the direction of the market in the coming weeks.
