Iron Ore Sinks Back Below $100 as Abundant Supplies Hurt Outlook

Iron ore prices fell below $100 a metric ton on May 21, 2024, marking the first time since March that the commodity traded at this level. This price decline is attributed to an increase in seaborne supplies, which are now abundant. Simultaneously, demand for iron ore in China, the world's largest consumer, is facing challenges. China's steel production, a key driver of iron ore demand, has shown signs of slowing. The country's economic recovery has been uneven, impacting construction and manufacturing sectors that heavily rely on steel. Analysts suggest that the combination of robust supply and weakening demand in China creates a bearish outlook for iron ore prices in the near term. The benchmark price for 62% Fe fines delivered to northern China was trading at $99.50 a ton, down 2.1% for the day, according to data from Fastmarkets.