
Volatility in the iron ore price continued on Tuesday as traders digested the latest news out of China.
Volatility in the iron ore price continued on Tuesday as traders digested the latest news out of China.
On the Dalian Commodities Exchange iron ore futures climbed 6%, while the import spot price forĀ 62% Fe content ore at the port of Tianjin closed up 6.5% to US$74.90 a tonne, reversing declines seen in the last two trading sessions.
A frenzied month of trading and the election of Donald Trump pushed the spot priceĀ to a two-year high on November 10, and it continued to climb to $80 a day later. That was followed by a 9% drop on the 15th, with the price settling a week ago at $72.20.
Chinese authorities recently upped trading fees and margin requirements to cool down the credit-fuelled speculation in iron ore, met coal and rebar. The steelmaking ingredient is up 72.1% year to date.
The fresh gains are down to strength in Chinese steel prices following further production cuts in the Northern China city of Tangshan, a major producer of Chinese steel, according to analysts at Metal Bulletin.
āThe city has imposed restrictions on the production of coke, iron and steel in a bid to improve air quality in the region,ā the group said, adding the restrictions will be in place for the next four months.Ā āNews of steel and coke production restrictions in Tangshan gave ferrous futures an upward push, sending the rebar contract to its daily limit of 2,900 yuan ($421) per tonne,ā said Metal Bulletin.
The move up could also be a result of a bullish commodity report by influential bank Goldman Sachs.
The bank today raised its 3-month iron ore price forecast to $65, and 6 and 12-month predictions to $63 and $55, respectively, per tonne.
āSteel consumption is more resilient than expected and demand for iron ore is likely to be supported further by incremental restocking across the steel supply chain,ā said Goldman. āFurther, the pace of supply growth has slowed as a result of delayed capital expenditure and operational challenges.ā
Ā
The post Iron ore price nudges $75 appeared first on MINING.com.
Ā
MARKETS
COMMODITIES
Commodities | |||
---|---|---|---|
Gold | 1810.47 | +0.20 | |
Silver | 21.13 | +0.05 | |
Copper | 4.19 | +0.01 | |
Palladium | 1948.00 | +13.99 | |
Platinum | 946.00 | +5.76 | |
Oil | 111.21 | +0.72 | |
Heating Oil | 3.78 | +0.02 | |
Natural Gas | 7.80 | +0.14 |
DOWNLOAD FREE REPORTS
BROWSE COMPANIES BY SECTOR
- Agriculture Investing
- Phosphate Investing
- Potash Investing
- Base Metals Investing
- Copper Investing
- Iron Investing
- Lead Investing
- Nickel Investing
- Zinc Investing
- Battery Metals Investing
- Cobalt Investing
- Graphite Investing
- Lithium Investing
- Manganese Investing
- Vanadium Investing
- Critical Metals Investing
- Magnesium Investing
- Rare Earth Investing
- Scandium Investing
- Tantalum Investing
- Tellurium Investing
- Tungsten Investing
- Energy Investing
- Oil and Gas Investing
- Uranium Investing
- Gem Investing
- Diamond Investing
- Industrial Metals Investing
- Aluminum Investing
- Chromium Investing
- Coal Investing
- Molybdenum Investing
- Tin Investing
- Precious Metals Investing
- Gold Investing
- Palladium Investing
- Platinum Investing
- Silver Investing
- 3D Printing Investing
- Bitcoin Investing
- Blockchain Investing
- Cleantech Investing
- Cloud Investing
- Cryptocurrencies
- Data Investing
- Emerging Tech Investing
- Artificial Intelligence Investing
- Mobile Investing
- Robotics Investing
- Fintech Investing
- Gaming Investing
- Esports Investing
- Nanoscience Investing
- Graphene Investing
- Nanotech Investing
- Security Investing
Featured stocks
Investing News Network websites or approved third-party tools use cookies. Please refer to theĀ cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.Ā