Highly demanded by the steel industries, the trend of the iron price is subject to a sawtooth variation. Investors are increasingly skeptical about the (upcoming ??) stabilization of this metal’s price.
Outcry over the price of iron per tonne and per kilo
Analysts blame the impending iron shortage as the direct cause of the decline in this metal’s price. Needless to say, such allegations are not very common in the base metals market.
Currently, the price of iron per kilo trades at a few euro cents, which is not much compared with some metals. A tonne of iron thus trades at around 90 euros. You may be able to get more than this price if your stock is of superior quality. With some scrap dealers, iron even traded at 100 euros in March 2017, so be sure to make a good price comparison before concluding a transaction.
It should also be recalled that, being an element that enters into the composition of certain alloys such as the steel, the state of health of the iron market can influence their prices.
Is the market in decline ?
Rising demand from China is no longer enough to stabilize the iron price; on the contrary, the price of iron has fallen sharply again on the London market and is trading at less than 100 dollars. Recall that two years ago, the price of iron was trading at over 200 dollars.
The iron market recorded in March 2017 a drop of 1.8% compared to February, and a decline of almost 57% over one year, which is hardly encouraging for an investor.
However, it is hoped that this decline could have a positive effect on the price, but in the long term. By accumulating unsold round iron in their warehouses, market participants can rebuild their stock and avoid the shortage so feared by investors.
This decline could also be an advantage if you wish to invest for the long term. Since the downward trend will have to reverse one day, analysts remain fairly optimistic on this point, and you could thus profit greatly from the reversal of this trend.
An increasingly alarming decline
Nothing is going well for the iron market, even though the number of investors continues to rise.
For nearly 12 moins, the fall recorded by the iron market is around 57%. This rate seems this rate is very alarming for an investor.
The decline recorded from April to date is 18.75%. Trying all the same to put on a good face, analysts are no less optimistic on this matter. If Chinese demand were to triple or quadruple in volume, the price of iron will eventually rise and stabilize, who knows ?
Indeed, if one analyzes the iron curve, a small recovery in value can be seen since May 2017 of almost 18% (a price of 55 dollars per tonne was recorded in May)
Should we hope that the shortage can really be resolved ?
Iron is the essential element of all leading steel firms, it is worth recalling. Indeed, it is the base material for almost all steel industries. Given the way this metal is being depleted, yes, a shortage is to be feared very soon, unless the iron stock on the markets is rebuilt as quickly as possible.
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