Get the latest insights on price movement and trends analysis of Iron in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Iron Price Trends for the Second Half of 2022
The price trendss for iron registered a mixed pattern in the said period. In Q3, the prices increased due to the stable prices of iron ore and ample demand in the region. The prices declined in the fourth quarter owing to the restrictions imposed due to covid. Some of the steel mills were forced to shut down to curb the rising cases of covid. The region saw a slight incline in domestic demand as it remained strong even in off-season periods. The fluctuating demand, restrictions on trade activities, and fluctuations in the steel market directed the price trendss for iron.
The declining price trends of iron was seen throughout the last two quarters of 2022. The prices in the third quarter declined due to the low demand, the downfall of the pig iron market, and a significant drop in the prices of pig iron. The demand somehow increased in the fourth quarter, but market sentiment remained weak. Additionally, the demand for raw materials declined and manufacturers struggled with the rising level of inventories. This all contributed to the downward trajectory of iron prices in the European region.
The fear of domestic recession and stagnant pig iron trade contributed to the falling trends in iron prices in the North American region. The prices suffered from the sanctions imposed by the West on Russian materials and significantly lower demand for the product in the regional market. The disruptions in trade, poor cost of input materials, and wait-and-see approach adopted by the buyers after witnessing the uncertain market conditions led to a significant decline in the prices of iron in the said period.
According to Procurement Resource, the prices of iron are expected to decline in the upcoming quarter. The price trendss for iron will be an adduct of the uncertain demand from the end-user industries, and global supply chain dynamics amid fears of a looming recession.
Iron Price Trends For the First Half of 2022
NMDC, India's largest producer of iron ore, reduced the base prices for iron ores by 580-730 INR/MT, causing the floor price of Fe 62% to average 3507 INR/MT for fines while 3900 INR/MT for lump. The iron ore prices will be reeling under pressure in the Indian domestic market owing to the imposition of export duty and the demand destruction. In China, the iron ore prices averaged 136.50 USD/MT.
These dipping prices are a cause of concern amongst steel manufacturers. Global metal prices have fallen around 20% owing to the looming speculations about a worldwide recession. Hence, the price trendss for Iron registered a fluctuating pattern due to the current complex economic and political realities.
Ukraine accounts for 30% of Europe's iron ore needs. With the continuing geopolitical confrontation in Europe, the precious shipment from Ukraine fell short owing to trade bottlenecks and border congestion. The Ukrainian iron ore exports fell by 23% in June 2022 as several iron ore facilities suspended operations in Ukraine. Europe thought of substituting Ukrainian exports with Brazilian exports.
The price of Brazilian 65% Fe averaged 127.30 USD/MT. However, the two months voyage period amid the trade bottlenecks and raised freight charges hindered the European manufacturers. Hence the margins of Iron manufacturers suffered owing to expensive logistics and muted demands.
In the US domestic market, the iron ores prices averaged 133.04 USD/MT in January and peaked in March, averaging 147.34 USD/MT owing to the various trade restrictions, inflated freight costs and labour shortages. However, the price trendss for Iron stabilized towards the second quarter, with iron ore prices averaging 131.04 USD/MT due to the muted market sentiment and baulking of buyers as the central bank tightened the monetary prices to fight inflation.
Procurement Resource provides latest prices of Iron. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Iron is a well-known chemical element. It is a metal which belongs to the first transition series and group 8 of the periodic table. It is, by mass, the most typical element on the earth, forming much of its outer and inner core. Iron shares several properties of other transition metals, including the other group 8 elements, ruthenium and osmium. Further, it is also a significant part of plant and animal life and works as an oxygen carrier in haemoglobin.
|Industrial Uses||Steel and other alloys, Metals, Tools, Automobile, Bars, Rods, Others|
|Supplier Database||Tata Steel BSL Ltd, Bharat Engineering Works, Essar Steel, Jindal Steel & Power Ltd, JSW Steel, Lloyds Metals and Energy Limited|
|Region/Countries Covered||Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|Currency||US$ (Data can also be provided in local currency)|
|Supplier Database Availability||Yes|
|Customization Scope||The report can be customized as per the requirements of the customer|
|Post-Sale Analyst Support||360-degree analyst support after report delivery|
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In this process, the blast furnace is loaded with iron ores, generally hematite or magnetite together with coke. Air pre-heated to 900 °C is blown through this mixture to turn the carbon into carbon monoxide. This reaction raises the final temperature to approximately 2000 °C and the carbon monoxide reduces the iron ore that finally results in the formation of metallic iron.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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