The daily Kallanish KORE 62% Fe index last week lost slightly more than 10% since its latest all-time peak reached on 18 of May at $219.84/t CFR China. The sudden drop was caused mainly by the actions of the Chinese government, concerned by the growing steel and raw material prices.

Since the 24 of May the price has stabilised again, but in the medium term many believe more corrections will be seen.

FITCH OUTLOOK

Iron ore prices should correct later in 2021, says Fitch Ratings. Supply has marginally increased in 2021 but the market remains nevertheless in deficit, ensuring therefore that the correction should not be too dramatic.

The credit rating agency sees iron ore averaging at $160/tonne cfr China for 62% Fe in 2021 and at $100/t in 2022. As of today, the 2021 average of the Kallanish KORE index stands at slightly above $175/t cfr China, some $70/t above 2020's average.