The global iron ore price may be in for a bit of a ride. Sector analysts foresee high price volatility in the first months of 2023, mainly due to the increasing number of coronavirus cases in China. Adding fuel to the fire is the fact that the government there has warned it will be “paying close attention” to the ore market changes.
Again, the primary factor in this movement is China. Late last year, the country decided to start reopening its economy, which many hoped would reboot its infrastructure growth. Now, all that could be sand in the wind.Rising iron ore costs recently prompted the On Tuesday, news agency Bloomberg tweeted that China’s top economic planning body had summoned a group of iron ore traders. What’s more, they asked them to provide details of recent business.
Chinese economists are looking for increased infrastructure spending, increased activity across the board, and any property sector rebound. Any of these would swiftly translate into increased demand for iron ore by China’s steel mills. Clearly, this would explain the spike in the iron ore price. Instead, the rise has sparked yet another attempt by China’s authorities to dampen speculative activity.Last year, China established a new organization, China Mineral Resources Group .