Iron ore price is recovering

Iron ore prices rose after falling to an eight-month low last week, as concerns about the outlook for demand from China's leading steelmaker rose in the market.

Once one of the hottest commodities in this year's commodity boom, the destruction of iron ore quickly made it one of the most volatile. A brutal five-week collapse in futures and a 13% drop in the spot market on Thursday resulted in a loss of about 40% of its value from the May record.

The best-selling contract for January 2022, iron ore on the Dalian Commodity Exchange of China ended day trading with a 0.3% gain to 777.50 yuan ($ 119.64) a tonne, but fell 8% this week.

According to Fastmarkets MB, the benchmark Fe fraction with 62% Fe imported into North China changed hands at $ 140.44 per tonne, up 6% from Thursday's close.

China's determination to cap steel production this year amid an intensified decarbonisation campaign and renewed restrictions on COVID-19 have weighed heavily on iron ore futures and physical markets.

The China Iron and Steel Association has proposed limiting overall steel exports from the country and reducing the supply of low-grade products to secure domestic supplies amid efforts to reduce steel production and carbon emissions.