Iron ore ended 2021 above $120 a tonne, recovering from a low near $87 in the September quarter, after a year of extremes. Prices had climbed almost without a break in the first half, reaching a record $235 a tonne on 12 May as Chinese steel production set records on the back of infrastructure stimulus. Then Beijing's output curbs cut steel production, and the price more than halved in four months, falling below $100 in September. China produced a record 563 million tonnes of crude steel in the first half of the year, before output fell sharply in the second half. The big Australian miners still reported record profits and dividends for the year, having sold most of their ore near the top of the market. As 2021 closed, traders were divided: some saw the recovery above $120 as the start of a new rally, while others expected prices to fall again as China's property slowdown deepened.
Source: Stockhead — https://www.magnetitemines.com/insights/iron-ore-was-a-game-of-two-halves-in-2021-theres-reason-for-both-pessimism-and-optimism-in-2022
Photo: Wikimedia Commons (freely licensed).