Robust iron-ore price to erode as steelmakers shut furnaces

The price of iron-ore is set to drift lower in coming months as the coronavirus pandemic eats away at demand, moderating its outperformance against other industrial commodities this year.

Iron ore has given up about 10% so far this year compared to 40% for the Refinitiv/CoreCommodity CRB index and 15% for copper.

Spot prices of iron-ore with a 62% iron content for delivery to China stood at $84/t on Wednesday and are expected to decline to $75/t by the fourth quarter, according to BMO Capital.