look news india
Mumbai: Global iron ore prices have fallen below $90 per tonne to a 22-month low due to weak demand from China. Demand for steel and steel products in China is not expected to improve in the near future, so steel production will remain low. The weakness in steel production is directly affecting the demand for iron ore, as iron ore is the main raw material for steel.
China's share in total global production of steel was about 55 per cent in 2023. Steel consumption has declined due to the slowdown in the real estate industry in China. The reduced demand for iron ore has increased its supply in the world market, resulting in pressure on prices.
China's efforts to stabilize the real estate market by providing stimulus have not shown significant results. Apart from the real estate market, China's economy has also slowed down.
Domestic ore prices are also falling behind the global market. Sources in the Federation of Indian Mineral Industries said the global price of iron ore, which was quoted at $140 per tonne in January, has fallen to around $90 today.
Ore exports from India are likely to be affected due to the fall in global prices.