Prices for the base metal reached a record high of over US$220 per metric ton (MT) in May 2021, but that level wouldn’t hold for long as lower demand from China alongside rising supply levels caused prices to dropped drastically in late 2021.
Iron ore prices rebounded to trade in the US$120 to US$130 range in 2023, spurred on by supply issues in Australia and Brazil, as well as the Russia-Ukraine war; higher export duties in India and renewed demand from China have also contributed to the commodity’s higher prices.
However, that positive sentiment in the iron ore market evaporated in 2024 as the global economic outlook weakened on higher interest rates, lower demand and challenges in China’s property sector. After starting the year at a high of US$144 per MT, iron ore prices slid to finish out the year at about US$95.
A cyclical rebound in Chinese steel production in Q1 2025 did manage to push prices for the metal back above US$100 again to briefly touch US$107 per MT in February. However, in Q2 2025, China’s economic woes, a growing surplus in iron mine supply and steel and aluminum tariffs were responsible for pressuring iron ore prices back down below US$95 as of late June.