Iron ore price steady while high inventory dampens 2022 outlook

Iron ore prices steadied on Friday while a rising portside inventory in China, along with softened demand, signaled prices could weaken in 2022.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $108.03 a tonne during afternoon trading.

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Iron ore for May delivery on China’s Dalian Commodity Exchange ended daytime trade 0.7% lower at 639.50 yuan ($100.46) a tonne.

The spot price of iron ore for delivery to north China has surged almost 25% over the past three weeks.

Meanwhile, Chinese customs data on December 7 reported November iron ore imports of 104.96 million tonnes, up 14.6% from October and the strongest month since July 2020.