The prices of Iron Ore are increasing day by day due to the shortage and this has become a major concern for most of the countries buying Iron ore. This is going to impact other sectors and commodities too. Steel Prices are tend to go up due to sharp rise in Iron Ore Prices. Steel is one of the major metal of Consumption and Iron Ore is the main raw material or ingredient for making steel. The rising prices of Iron Ore are going to effect Automobile Industry too, as Steel is one of the main raw material for Automobile Industry.
For the March quarter, average prices of Chinese iron ore fines increased 79% year on year to $136.27 per tonne from $76.13 per tonne. With increasing demand and lack of capacity additions the prices may rise further. The major consuming countries of Iron Ore include United States, India, China, Korea and European Union.