Iron Ore Price Today

Iron Ore Price for past 10 days

The following is the list of Iron Ore price in past 10 days

Types of Iron Ore

The following are the types of iron ore

1. Magnetite - 70% metallic iron, which is magnetic and has a black colour, makes up one of the most precious iron ores.
2. Hematite - This is a combination of red and brown, which constitutes 65% to 70% metallic iron.
3. Siderite - Between 40% and 50% of metallic iron is composed of carbon and iron, which makes up this iron ore. Compared to other iron ores, this one is brown in colour and has a higher impurity content.
4. Limonite - This is one of the low-grade iron ores that is yellow in color and contains less than 50% metallic iron.

Factors Influencing Iron Ore Price

The following are the factors that influence the price of iron ore

1. Due to the volatile nature of the price of iron ore, it gets affected by the shifts in demand
2. Supply of metal also impacts the overall price of iron ore
3. Political issues impact the international market rate that impacts the cost of iron ore
4. Demand for steel also impacts the price of iron ore
5. Demand and supply ration or iron ore in China is a major factor that impacts the cost of iron ore
6. Mining cost of iron ore influences the price as well
7. Supply for steel scrap also impacts the overall price of iron ore

Benefits of Iron Ore

The following are some of the benefits of iron ore

1. Iron ore is one of the most abundant minerals on earth that is used mostly by human
2. Iron ore is used in manufacturing jwelery and other decorative items
3. Ideal for manufacturing steel due to high iron content
4. Iron ore has wide range of uses due to its durability and solidity
5. Can be used in construction and other sectors as it is easy to mine and process

Why Invest in Iron Ore?

The following are the reasons as to why to invest in iron ore

1. Diversification of portfolio - Trading in iron ore is beneficial as it helps in diversifying the portfolio and reducing the overall risk in the portfolio.
2. Bet on Steel Demand - The need for infrastructure and rapid economic expansion in developing nations will drive up demand for steel in industries like construction and automotives. Trading in iron ore would benefit from the increased market demand for steel since the price would rise.

1. Inflation and Weak US Dollar Hedge - Since iron ore is traded in dollars, its price is influenced by the state of the American economy. A weak dollar increases inflation, which is advantageous for merchants who deal in commodities like iron or gold.
2. Bet on Resurgent Chinese Growth - Due to the high demand in iron ore in China, trading in iron ore is considered as a bet on a surging Chinese economy.

Ways to Invest in Iron Ore

The following are the ways to invest in iron ore

1. Iron Ore Futures Exchanges - The Intercontinental Exchange ("ICE") and the Chicago Mercantile Exchange (CME) both offer contracts on iron ore futures. CME offers two contracts with a 62% iron content and another with a 58% iron and low alumina concentration.

1. Iron Ore ETFs - Investors can trade iron ore as shares through exchange-traded funds, just like they can with corporate stock. The cost of manufacturing, level of competition, interest rates, and local demand for their products can all affect the shares that investors invest in.
2. Iron Ore CFD - Investors can also trade in iron ore through Contract for Difference (CFD) that allows traders to speculate the price of iron ore and its shares.