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Reuters reported that the iron ore price is enjoying its largest rally in years, with its gains outpacing those of both copper and nickel so far in 2016. However, forward prices are still weak, meaning the metal’s positive run may not last.
Reuters reported that the iron ore price is enjoying its largest rally in years, with its gains outpacing those of both copper and nickel so far in 2016. However, forward prices are still weak, meaning the metal’s positive run may not last.
As quoted in the market news:
Improving steel prices in top market China are helping fuel iron-ore’s climb as producers gear up for a seasonal uptick in demand. Yet there is no shortage of doubters who see gains in the bulk commodity as fleeting given a large glut and challenges for China’s economy.
“It’s hard to imagine this being a sustainable boom. I think the headwinds are still too strong in the market,” said Daniel Hynes, commodity strategist at ANZ.
At $47/t, iron-ore has risen more than 13% so far this month, its biggest such rally since December 2012.