HIGH-END STEEL PRODUCTS
China demand expected to keep iron ore rally going
Iron ore has more than doubled amid better-than-expected consumption in China after state stimulus
Singapore/Shanghai — Iron ore has carried 2016’s bullish momentum into the start of 2017, with prices rallying to a two-year high amid speculation that China’s demand for overseas ore will hold up even as the world’s largest miners bring on new capacity. Ore with 62% content in Qingdao in China climbed 3.9% to $83.65 a tonne, according to Metal Bulletin. The commodity has risen 6.1% in 2017 after surging more than 80% last year. Iron ore has more than doubled since it bottomed out in December 2015 amid better-than-expected consumption in China after state stimulus. The latest upswing has been supported by signs that policy makers in the world’s top steelmaker are redoubling efforts to clamp down on outdated mill capacity, lifting steel prices and buttressing iron ore. The advance has come even as banks including Barclays outline the case for weaker prices later in 2017, and as Brazil’s Vale starts up output at its largest mine. "One of the major factors driving iron-ore prices at pr...
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