Iron-ore keeps rallying amid strengthening Chinese steel demand
|Amid a commodities supercycle underway this year, iron-ore prices are not left behind, as they renew record highs on Monday, surging past $220 in Singapore.
Futures in Singapore jumped more than 10% in a matter of minutes to record all-time highs at $226. The relentless rise in iron-ore prices comes on the back of China’s steel boom. Iron-ore is an essential raw material for manufacturing steel.
Chinese steel mills are scurrying for stockpiling Australian high-grade ore in case trade restrictions are imposed, especially in light of China’s suspension of all activities relating to the Sino-Australia Strategic Economic Dialogue last week.
Further, a solid Chinese economic recovery combined with massive stimulus also aids the bullish momentum in the ferrous metal.
According to S&P Global Platts, “Appetite for steel has been far beyond expectations as China returned to work. They are keen to produce as much as they can, regardless of the price of ore.”
Last week, copper refreshed record highs, thanks to rising expectations of a faster global economic recovery.
Despite the surge in the iron-ore prices, AUD/USD has failed to capitalize on it so far this Monday, as the aussie retreats from three-month highs of 0.7863.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.