Iron ore prices fell to a four-month low amid exacerbating concerns about the global economy and oversupply. Likewise, lower steel production and demand continued to weigh on raw materials.
Iron ore prices fell by 62% to reach $110/t CFR, which was attained on December 20, 2022.
The main reason for the decline in prices across the steel and commodities markets were renewed concerns about economic instability in the world.
Besides, the Chinese central bank said that most of its supportive programs during the pandemic were temporary and would be phased out as their goal was reached with the economic recovery.
There is an iron ore oversupply, as BHP Group reported its production rose to a record high in the first nine months of the current fiscal year. Rio Tinto’s iron ore exports record in the first quarter, while Vale also revealed increased production since the beginning of the year.
