Iron-ore which was once one of the world’s hottest commodities, is now the most volatile commodity in the world. Iron-ore which fuels the China steel industry, surged to a record high, collapsed into a bear market and then returned to a bull market all within the space of one (1) month. Policy changes in China which aim to cut steel production, reduce investment but maintain employment, will dictate the outlook for steel. Having said that, it is reported that the volatility and policy change will not result in an iron-ore collapse as lower steel production should raise prices and improve margins at iron-ore mills.

Source: https://www.miningweekly.com/article/one-of-the-worlds-hottest-commodities-is-now-the-most-volatile-2021-06-18