Iron ore may stay elevated with robust Chinese demand, supply disruptions

Since Feb 2020, when Covid-19 was at its peak in China, prices of international iron ore skyrocketed by over 75% to a seven-year high of over $150 a tonne

The red-hot rally in iron ore prices may continue into the new year with Chinese demand going strong and disruptions in supply –globally and in the domestic market.

Since February 2020 when the Covid-19 was at its peak in China, prices of international iron ore – a key input material for steel – skyrocketed by over 75 per cent to a seven-year high of over $150 a tonne with a surprising resurgence in the economy there.

The rebound in China has been better than expected. World Steel Association, which represents 85 per cent of global steel production, had projected a