Iron ore prices fell sharply due to low demand in China
The cost of iron ore over the past week fell by almost 10%. The reason is the decline in demand in China, where there is a reduction in steel production. According to statistics, in October they fell almost 3% month-on-month and 23.3% year-on-year to 71.58 million tons. The average volume of steel produced per day in the same month reached a four-year low of 2.3 million. This was more than 6% lower than in the same period last year. The prerequisites for this were the country's energy supply problems, regulatory restrictions to reduce emissions, and low demand. According to experts, in the last two months of this year, steel production in China may continue to fall due to new restrictions that have begun to operate in the north of the country. In addition, its construction industry is experiencing problems with liquidity, which is in short supply. Before the end of the year, Brazil and Australia may reduce the volume of iron ore exports, which would slightly contribute to the growth of its value.