Iron Ore Prices

Iron ore prices averaged USD 109.69 per metric ton in March, down 12.6% from February. On 29 March, the commodity traded at USD 101.50 per metric ton, down 13.2% from 29 February.

Prices declined further in March on the back of sustained demand weakness in top consumer China. The all-important property market remained in the doldrums, as signaled by plummeting home sales in March. Against this backdrop, steel demand ramped up at a slow pace following the Lunar New Year festivities, which prompted output curbs in several Chinese steel mills, thus weighing on demand for iron ore. That said, recovering manufacturing activity in March in the Asian powerhouse should have cushioned the fall.