JOHANNESBURG – The falling price of iron ore, one of South Africa’s biggest mineral exports, places iron ore producers, such as Kumba Iron Ore, under pressure.
The spot price of 62 percent iron ore fines, which mainly used for steel production, slumped 5.42 percent to $94.39 a ton yesterday, down from the $100 (R1 488) a ton level for the first time since June 6 on improved supply from Brazil and intensifying geopolitical tensions between China and the US.
Iron ore, together with the other platinum group metals, has been one of the best-performing commodities of 2019.
The iron ore price jumped more than 60 percent to above $123 a ton in February, owing to supply disruptions in Brazil and Australia, and record steel production in China.
Seleho Tsatsi, an investment analyst at Anchor Capital, said yesterday low prices would place iron ore producers under pressure.