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The Financial Times reported that iron ore prices jumped to their highest point in three months on Tuesday, spurred on by seasonal restocking by China’s steel mills. Overall, iron ore is up 5 percent so far in 2015 — it’s outperformed most commodities aside from gold.
The Financial Times reported that iron ore prices jumped to their highest point in three months on Tuesday, spurred on by seasonal restocking by China’s steel mills. Overall, iron ore is up 5 percent so far in 2015 — it’s outperformed most commodities aside from gold.
As quoted in the market news:
Iron ore with 62 per cent iron content for delivery to China, a key steelmaking ingredient and a big source of profits for miners such as BHP Billiton and Rio Tinto, rose to $46.10, its highest level since November 17, according to the Steel Index.
The gains this week have been driven by Chinese steel mills restarting after the week-long new year break, and amid a short-term supply tightness in the market, according to analysts.Iron ore supply from Brazil has been hit after the closure last November of the Samarco mine, a joint venture between Brazil’s Vale and Australia’s BHP Billiton, following a dam burst.
“Because of some tonnes switched off for winter and the Samarco losses the market is notionally undersupplied,” said Melinda Moore, a client supervisor for ICBC Standard Bank in London.
Iron ore futures traded in China have also benefited from improving sentiment after data showed that credit and bank loans in the country rose to a record in January. Chinese stocks rose on Tuesday, with the Shanghai Composite Index up 3.3 per cent.
Click here to read the full report from the Financial Times.