Iron Ore Prices

Iron ore prices dropped in May on weaker Chinese demand. Prices averaged USD 105.0 per metric ton in May, which was 10.7% lower than April’s price and was 21.0% lower than in the same month last year. On 31 May, the benchmark iron ore 62% Fe import price, including freight and insurance, at the Chinese port of Tianjin was USD 100.5 per metric ton, which was 4.7% lower than on the same day of the previous month.

Prices declined further in recent weeks as Chinese demand remained subdued. The peak construction season—April to June—got off to a weak start: Iron ore imports dropped to a 10-month low in April. Moreover, growth in the value of new home sales slowed significantly in May. Additionally, the overall health of the Chinese industrial sector worsened in May, as signaled by a contractionary PMI reading. That said, prices regained some ground towards the end of the month, as some Chinese steel mills ramped up production, buttressing demand for iron ore.