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    January 19, 2022

    CRU: Iron Ore Shook by Weather, But Demand Still Leads Price

    Written by Erik Hedborg

    By CRU Principal Analyst Erik Hedborg and Research Analyst Aaron Kearney-Keaveny, from CRU’s Steelmaking Raw Materials Monitor, Jan. 19

    Over the past month, the iron ore price has continued its rise that started back in mid-November, reaching $125 /dmt on Jan. 18. The rise has been more volatile than the previous month, but has shown signs of stabilizing as is expected for Q1. In December, supply ramped up, particularly from Australia, as did Chinese demand due to BF restarts and pre-CNY restocking. However, with the CNY approaching, Chinese demand will subside as BFs will be operated by drawing down inventories purchased over December-January. Brazilian supply has been disrupted due to heavy rainfall, but the rain has been easing and current forecasts are optimistic.

    Erik Hedborg

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