According to the information compiled from the data of foreign sources and market analysts, the latest developments in iron ore are as follows;
The rapid decline in iron ore in recent weeks shows once again that price declines may be as erratic as the rallies' enthusiasm before the fundamentals of supply and demand reassert themselves.
Depending on what price is used for the steelmaking material, the price has dropped between 32.1% and 44% since hitting an all-time high on May 12 of this year.
The record increase was driven by key drivers, namely supply constraints in top exporters Australia and Brazil, and strong demand from China, which buys around 70% of global seaborne iron ore.
However, as assessed by commodity price reporting agency Argus, a 51 percent jump in iron ore spot price for delivery to northern China from March 23 to $235.55 per tonne on May 12 in just seven weeks is always justified. can be very different from market fundamentals.
The pace of the subsequent 44% decline is probably not justified by fundamentals, even if the recent trend towards lower prices in the spot price of $131.80 per ton is perfectly reasonable.
Supply from Australia remained stable as the impact of previous weather disruptions waned, while Brazil's shipments began to rise as the country's production recovered from the effects of the coronavirus pandemic.
Australia is on track to ship 74.04 million tons in August, compared to 72.48 million in July but below a six-month high of 78.53 million in June, according to data from commodity analysts Kpler.
According to Kpler, Brazil is expected to export 30.70 million tons in August, parallel to 30.43 million tons in July and 30.72 million tons in June.
It is worth noting that Brazil's exports rebounded earlier this year when it was below 30 million tons each month from January to May.
Australia is on track to ship 74.04 million tons in August, compared to 72.48 million in July but below a six-month high of 78.53 million in June, according to data from commodity analysts Kpler.
According to Kpler, Brazil is expected to export 30.70 million tons in August, parallel to 30.43 million tons in July and 30.72 million tons in June.
It is worth noting that Brazil's exports rebounded earlier this year when it was below 30 million tons each month from January to May.
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