During a season when the construction industry has been challenged by increasing materials costs, good news is coming in the iron ore department.
According to sources, the price of iron ore, which is used to make iron - before the iron is used to make steel - has fallen more than 50% in just the last two months.
Even more, the current price at $94 a metric ton, is now at its lowest level since July of 2020.
The London-based market analysis firm S&P Global Platts is reporting that iron ore is now trading at just below $108 a ton. In May it traded above $233 a ton.
According to the publication Mining Technology, the iron ore price free-fall could be expected to continue for the duration of 2021.
The publication notes that China, one of the world’s leaders in iron ore production, has recently decreased that output in an effort to reduce the pollution effect of its coal-fired steel mills.
Analysts say that the price of iron ore per ton could drop to as low as $70 by the end of the year.
The iron ore price decline comes after a steady upward trend starting in early 2020 and continuing on pace until late this summer.
By Garry Boulard
Your comment will be posted after it is approved.
Leave a Reply.
Get stories like these right to your inbox.