Trading Economics recorded a price of $US161.80 on New Year’s Day before spiking to $US167.04 on January 2.

However, this is still below Trading Economics’ recorded price high of $US172 on December 21, suggesting a slow decrease in prices for the commodity.

Macrobusiness observed that Tianjin spot prices faltered during the Christmas period by 3 per cent to its lowest since mid-December.

It also noted the active status of iron ore during the tail end of 2020, with the Dalian Commodity Exchange iron ore futures gaining almost 40 per cent during the final quarter of the calendar year.

The fluctuation of iron ore prices is predominantly influenced by unprecedented demand from China, the world’s largest producer of steel.

Despite its number one status for steel production, Reuters reported that China’s Ministry of Industry and Information Technology called on the nation’s steel sector to cut crude steel output.

Trading Economics also expects an eventual drop in iron ore prices in 2021 and beyond.

“Iron ore is expected to trade at $US151.51 per tonne by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations,” Trading Economics stated.

“Looking forward, we estimate it to trade at $US132.33 in 12 months’ time.”

Last November, iron ore recorded an all-time high price exceeding $US200 per tonne.