The reason why the price of iron ore has skyrocketed so much, in short, is because of the contradiction between supply and demand.

Iron in our daily life has a very wide range of applications, but China's iron ore reserves are very small and generally lower quality, so the vast majority of China's iron ore are dependent on imports. According to the big data to see 2020 January to November, China's imports of iron ore is as high as 1.07 billion tons, far more than last year's total imports. Because of this, the price of iron ore a little wind will have a huge impact on China's iron and steel smelting industry, the most direct and most fundamental is to increase the cost of production and thus reduce and weaken the period of its profitability and level.

In fact, not only iron ore, in our daily life, the price of many commodities its root cause is the contradiction between supply and demand. With the new crown pneumonia epidemic spreading around the world, the world's four largest iron ore producing mines located in Australia and other places all coincided with the production cuts. As a major iron ore producing region, Brazil has also closed many iron ore production mines because of the impact of the epidemic.

With the gradual recovery of production capacity in various regions around the world, the demand for iron ore is also increasing, while the production of iron ore has been downgraded again and again and there is no clear indication of plans to increase production. In the role of increasing demand and production reduction of this contradiction in the price of iron ore is growing, relative to the price of about 500 yuan in September 2020 a ton rose to about 700 yuan, an increase of 40%.