Iron ore futures leaped more than 10% to $226 in Singapore to a record high on Monday open. The recent surge in prices has been primarily driven the rampant Chinese demand and the wider pick-up in commodity prices due to higher inflation expectations.
According to the commodities analyst, Vivek Dhar at Commonwealth Bank of Australia, commodities trading is extremely hot with the supply unable to meet that strong demand.
Bloomberg’s commodity price index has also reached the highest level in nearly a decade. Iron ore is just one of the commodities from gold to crops that have displayed strong upward price pressure in recent months. Copper continued its record rally to more than $10,500 a ton on Monday’s trading session.
The heavy steel demand from China’s manufacturing and construction sectors as the economy recovers have sent steel prices higher. Steelmakers globally are benefiting from a boom as the market rebound strongly from the pandemic. CBA’s Dhar raised the likelihood that ex-China demand can fuel a global pick up in steel demand that will drive iron ore prices to remain at elevated levels.
Read more on:
- Commodities Hit New High on Positive Oil Demand Outlook
- Aussie Falls 50 Points as China Halts Economic Dialogue with Australia
Zero Markets provide a variety of account types suitable for all types of traders including ECN Account (Super Zero Account), Standard Account, Islamic Account, PAM/MAM, and Pro Trader Account. Start trading with the best-regulated CFD broker – Zero Markets. Enjoy competitive pricing and tight spreads starting from 0.0 pips across more than 60 tradable instruments.
Leave a Reply