China’s plan to impose severe restrictions on steel production this year caused iron ore prices to plummet last month. The Brent price, on the other hand, had the inverse curve and increased for the fourth consecutive month, driven by advances in vaccination against covid-19 around the world.
Prices for ore with 62% iron content closed the month of July at US$ 181.57/ton at the Chinese port of Qingdao, representing a drop of 15.19%. Accumulated gains for the year were 13.15%, despite the fall last month.
For the mining and steel analyst at Santander, Rafael Barcellos, adjustments in commodity prices should continue throughout this semester due to a slowdown in demand in China. The expectation, according to Barcellos, is that iron ore will close the year with an average price of US$ 170 per ton.
Source: Valor Econômico
