Top iron ore stories of 2021 and what to expect in 2022

The iron ore price went on a white knuckle ride in 2021.

Prices jumped to a record of $237 a tonne in May, and crashed to about $85 in November on China’s pledge to reduce steel output. In November, Fitch Solutions said the iron ore price rally was over. In the last weeks, however, the metal rallied 50%.

Iron ore is a barometer for the Chinese economy, so Chinese steel curbs to control carbon emissions set the tone for the metal’s performance during the year.

In March, the Tangshan government issued a second-level pollution alert, urging heavy industrial companies such as steelmakers and coking plants to cut production accordingly.

The move dampened the market’s optimism about a post-Lunar New Year demand boost for iron ore in the world’s top steel producer.

Concerns about the debt problems of Chinese property developers, a sector that accounts for about a quarter of the domestic steel demand, also added pressure on prices of iron ore and steel.