Iron ore prices have jumped 10% in hopes of a global economic recovery

As iron ore prices rose more than 10 percent in Asian trade on Monday, global economic recovery from the Kovid-1p epidemic is expected to extend beyond the China and Boeing products market.

The price of iron-shaped futures in Singapore has risen to more than 6 226 per tonne, a record for the dollar. The price of the most active futures contract in Dalian, China’s main commodity trading center, was also ten percent.

A Recent height runs For the steel-making component, which is supported by strong demand from the rapidly recovering Chinese economy, along with other raw materials, and is expected to benefit from government support around the world.

“It simply came to our notice then. . . This is the full force of recovery in the global steel industry, ”said Justin Smark, a senior economist at Westpac. “I think the reality is the market is still incredibly tough, we’re still getting very tough steel prices.”

In China, steel production jumped 19 percent in March, despite Beijing’s efforts Crack down on production As the government strives to achieve its environmental goals.

Of China Imports have increased Its exports are lagging behind as well as the hunger for raw materials. Imports rose 43 percent in April from a year earlier, although last year the epidemic was due to lower levels due to a slowdown in global trade, according to data released on Friday.

The Strong recovery China’s economy, which returned to pre-epidemic growth at the end of last year, lost some momentum in the first quarter. Iron ore imports in April fell compared to March.

Iron-shaped trade exports from Australia to China have come under scrutiny in the wake of geopolitical tensions. As a result of tariffs Run as barley, beef and wine.

Brokerage StoneX’s Michael Lavchio speculated on whether the iron price jump could be attributed to “underlying market demand,” “Chinese / Australian tensions are getting worse” or “just Chinese retail speculation”.

According to data released on Tuesday, raw material prices in China have risen further this year Expected a jump display more than per percent. China recorded a negative PPI between the rise of the epidemic last year and the beginning of 2021.

Warren Patterson, head of product strategy at ING, suggested that the prospect of price increases drives investors’ demand for products.

“Iron ore is a real asset, so it’s seen as a good inflation hedge. I think that’s why we see a lot of investors going into commodities,” he said.

“We are clearly reaching a level where I think the core system of pricing is distinguishing it from the real fundamentals,” he added.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *