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.
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