The most recent peak in the iron ore price was in March at about US$160 per tonne. Since then, the commodity’s value has fallen in a very jagged line to trade just above US$100 per tonne today.
As is usual, the major ASX mining shares have fallen alongside the iron ore price.
Since March, the BHP Group Ltd (ASX: BHP) share price has dropped 17.5%. Rio Tinto Limited (ASX: RIO) shares have fallen 22%. The Fortescue Metals Group Limited (ASX: FMG) share price has lost 1.3%.
Analysts at Trading Economics forecast iron ore to trade at about US$109 by the end of the September 2022 quarter. In a year’s time, the team expects the iron ore price to be about US$97 per tonne.
But Saxo Bank country head of direct sales, David Harvie, isn’t worried. Harvie says China’s demand for iron ore is a long-term trend given the country’s ongoing industrialisation. He reckons it’s only a matter of time before the world’s largest consumer of iron ore begins chewing it up at a strong pace again.
