Why Does Iron Ore’s Price Drop?

Why Does Iron Ore’s Price Drop?

In last September-October, iron ore’s price is dropping about 20%. Even though the price reached the peak in February : USD 90 per ton. The price is increasing in February, June, and August according to report, but soon falling down. What is the reason?

It is because of China’s iron ore demand.

Government of China planned to mandate a significant cut of steel production in the country during winter to decrease pollution. This could decrease steel production about 30 million tons and decrease iron ore consumption about 50 million tons.

The immediate demand decreasing surely impacts Western Australia, which is the largest producer and […]

Indonesia Mining Map

Indonesia Mining Map

Indonesia is on the west side of the “Pacific Ring of Fire”, characterized by high volcanic activity.  At one point, Magma from the Pacific Ring of Fire is thought to contain a variety of precious metals, especially gold and copper. As part of the Pacific Ring of Volcano, Indonesia also potentially has natural resources in the form of minerals. Eastern Region of Indonesia covering 68% of the territory of the Republic of Indonesia. Covering an area of nearly 1.3 million square kilometers that estimated to hold 81.2% of Indonesia’s mineral.

Minerals on Indonesia map:

Petroleum
There are many petroleum […]