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The iron ore price tumbled to a 17-month low, but the crash has ignited speculation that the commodity is close to bottoming.
That would be very welcomed news for ASX iron ore shares. The BHP Group Ltd (ASX: BHP) share price, Fortescue Metals Group Limited (ASX: FMG) share price and Rio Tinto Limited (ASX: RIO) share price have been under pressure in the last four months.
It’s during that period that the steel-making ingredient dived from a record high of around US$220 to around US$94 a tonne.
Why the iron ore price could rebound

But a turnaround may be in sight with some experts pointing to China’s steel output. This is on track to meet and even exceed the government’s goal of capping 2021 steel production at 2020 levels.
The September figures are the silver-lining for the embattled iron ore price. The Australian Financial Review reported that steel production that month fell to levels below those mandated by China.
This means the commodity could rebound as soon as next month, according to Australia and New Zealand Banking GrpLtd (ASX: ANZ) senior commodity strategist, Daniel Hynes.
ASX iron ore shares are steeling themselves

“China is on track to meet its target of holding this year’s steel production at 2021 levels, so steel output could start to rebound in December,” the AFR quoted Hynes as saying.
“This would flick China’s iron ore market balance from surplus to deficit in December, and provide a floor for prices.”
The Chinese government is trying to control pollution by curbing steel production in the country. This triggered the slide in the iron ore price.