Insight - Iron ore slump justified by improving supply, China steel control

The surge to the record did have fundamental drivers, namely supply constraints in top exporters Australia and Brazil and strong demand from China, which buys about 70% of global seaborne iron ore.(File pic shows iron ore transported by train in Australia.)

IRON ore’s rapid retreat in recent weeks shows once again that price pullbacks can be as disorderly as the exuberance of rallies, before the fundamentals of supply and demand reassert themselves.

Depending on which price for the steel-making ingredient is used, the price has slumped between 32.1% and 44% since the all-time high reached on May 12 of this year.