COVID-19 has not only proved to be a threat to the health of billions of people – but it is also a threat to the economy. Due to the negative effect on the economy on a global scale and the sudden decrease in the global GDP up to 5%, many industries have been affected and are in trouble. The iron ore industry is one of those. Several reports have shown that iron ore prices have skyrocketed after the global economy faced a major rebound.
The prices have gone up because the major countries that contribute to the Iron Ore industry have struggled because of the pandemic. Several reports have ruled out the possibility of recovering the Iron Ore industry as the industry has suffered from a major shock. Many countries like Singapore have experienced an unreal increase in the prices as they have doubles now. Other countries are also facing a heavy spike in Iron Ore prices. Several factors have contributed to this heavy rise in prices. Below are the factors that have contributed heavily.
What are the Possibilities Regarding Iron Ore Prices According to Benjamin Gordon Palm Beach?
Due to the steel manufacturing in China up by 30% in the past few years, the demand for Iron Ore has been very high for the last few years. This has resulted in a lack of supply of Iron Ore, and hence prices have skyrocketed. Many expert analysts like Benjamin Gordon Palm Beach believe that the prices of Iron ore per ton can even touch the $200 million mark as the global economy is expected to sit at the same point soon. China, the world’s largest steel manufacturer, has grown its steel industry even bigger, and the production has reached a record high in the last two years.
However, another story that has emerged says that as the global economy improves a bit towards the end of 2021, the prices will, in all probability, make a U-turn. Many economists and financial analysts have released their statements saying that the prices of iron ore will surely suffer a decline by the end of the year. China’s government has also been active regarding the global increase in the prices of iron ore. China consumes the maximum iron ore among all the countries of the world and hence is a major participant in the game of prices of iron ore.
The whole world is hoping that the policymakers in China do something that will bring down the iron ore prices. Being the largest iron ore importer, China has a very important role to play here.
The global economy and the individual economy decrease for various countries have resulted in unusual development patterns due to which several industries face a problem. Iron Ore is the most prominent example in the present scenario. However, the world has witnessed several ups and downs in iron ore prices, and this one will surely be a short-term problem.