Iron ore steadies in the new year

Author: Paul Ploumis09 Jan 2015 Last updated at 04:45:34 GMT

CANBERRA (Scrap Monster): The shares in the iron ore miners like BC Iron, Atlas iron, and also Arrium, have jumped out of the blocks, at the beginning of first few weeks of trading when the investors speculate on the possibility of iron ore price decline.

After the decline of iron ore price, top a five year low, in the month of December, the price of iron ore hiked above 70 dollars per tonne, which is now very much better than the price of the commodity in the past month, which was recorded to be 65.70 dollars per tonne.

The strengthening in the price of the commodity, might be due to the spread of rumors that, China, is planning to push up the country’s plan of investing 1 trillion dollars on the infrastructure projects in the country, aiming to restock its iron ore port inventories.

The commodity was dipped in horror in the whole year of 22014, when the price of the raw material was cut down to half, which was really hard on the small high cost miners. Last year Atals Iron, lost about 80 percent of its value.

The decline in iron ore price, due to the decline in the demand of the commodity in China, and the slowing economy in the country, at the same time, giant miners like BHP Billiton and Rio Tinto cranked up their production of the commodity as well as the supply.