Bloomberg reported that amid iron ore’s impressive trading performance last year, it may be able to extend the rally as steelmakers in China seek imports to compensate for losses in local production due to the coldest winter that has ever hit the country in 28 years.
As quoted in the market news:
Prices may average $130 a ton this quarter before climbing to $135 in the next three-month period, Tom Price, a commodities analyst at UBS AG, said today. The country’s mines have been unable to boost output that was curbed by the cold spell, Credit Suisse Group AG said Jan. 10. Prices may rise to $170 a ton in the first half, Deutsche Bank AG said Jan. 8.