Iron ore and coal prices continue to be affected by China’s markets
China’s demand for iron ore remained slow this past week, causing a drop in iron ore prices to 89.01 USD/ton, a low point for the year. At the same time, iron ore production has increased, hitting record levels. The lower prices precipitated an increase in imports, as importers were quick to take advantage. However, due to low producer demand, iron ore is sitting in inventory, driving up inventory levels to 109.3M tons in just the last week. A further drop in iron ore prices is expected, good news for Chinese importers who will continue saving money.