Iron Ore Jumped 10% to Hit a Record of 226 US Dollars
Chinese buyers are working hard! Iron ore jumped 10% to hit a record of 226 US dollars, demand only increased.
At the opening of the market on Monday, iron ore futures prices rose sharply, continuing a record increase due to strong demand in China, and as the global economy recovers, commodity prices have seen a broader surge.
Singapore futures prices rose by more than 10%, setting a record high of US$226 per ton. Due to the tight supply caused by strong demand in China, the price of this steelmaking raw material is soaring, surpassing US$200 for the first time last week.
Commonwealth Bank of Australia Commodity Analyst Vivik Dahl said in an interview with Bloomberg: “This industry is very, very hot, and when the impulse for steel demand in China will ease, perhaps the biggest problem in 2021. Supply is still unable to meet such a strong demand.”
Iron ore is just one of the rising prices of raw materials ranging from copper to crops in recent months. Bloomberg’s commodity spot price index reached its highest level in nearly 10 years last week. Copper prices also continued their record-breaking gains on Monday, once soaring to US$10,500 per ton.
China’s steel prices have risen quite sharply, on the one hand because steel users such as construction and manufacturing are in the peak season, and on the other hand, it has also benefited from the stimulus measures. As the market rebounds from the epidemic, steel manufacturers in other parts of the world are also enjoying prosperity. CBA’s Dahl said: “demand outside of China is likely to recover to such a level, and iron ore demand will also remain at these high levels.”