Iron Ore Drops Below $100
- By John Tierney
- 2 min read
Summary
- Commodities dropped sharply in recent weeks on recession concerns and profit-taking.
- Iron ore registered one of the largest two-week drops on record, falling 22.5% at one point.
- Investors are worried about the pace of the reopening, the timing and nature of second-half stimulus, more evidence of a depressed property market, and burgeoning steel inventories.
- In a sign of incipient normalisation, most Covid restrictions have been lifted, iron ore imports are rising as ports reopen, and iron inventories are still falling.
- Still, iron ore is likely to be volatile in coming weeks.
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