Iron Ore Price Soars as China-Australia Trade Uncertainties Linger
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As inflation rises, market demand for steel will edge down.
China s iron ore prices have hit record highs, driven by a surge in steel demand as well as speculation on fluctuations in the Chinese-Australian iron ore trade, industry experts told the Global Times. They also warned of a possible price plunge with market liquidity tightening and rising inflation levels.
On Monday, the most active iron ore contract for September 2021 delivery gained 10 percent to close at a record high of 1,326 yuan ($206.2) per ton, according to data released by the Dalian Commodity Exchange. The contracts for February 2022 and March 2022 rose by 9.98 and 9.96 percent respectively.
SOURCE / ECONOMY
By Global Times Published: May 07, 2021 02:30 PM
Cranes unload imported iron ore at the Lianyungang Port in East China’s Jiangsu Province on Sunday. In September, the port’s iron ore throughput exceeded 6.5 million tons, a new high for the year, making it a major port for iron ore imports in China. Photo: VCG
China s iron ore imports remained strong from January to April with import volumes increasing by 6.7 percent, bolstered by resilient demand after the resumption of production, pushing up the price significantly (58.8 percent) to 1,009.7 yuan ($156.3) per ton, remaining at a high level. Meanwhile, the average price for imported iron ore in April alone reached $164.4, the highest since November 2011, data with Beijing Lange Steel Information Research Center shows.
Surging commodity prices put pressure on Chinese manufacturing firms
Surges in bulk commodity prices are putting pressure on China’s manufacturing sector, pushing authorities and industry participants to seek plans to stabilize the market to fend off potential disruptions and risks.
The price of staple commodities such as copper, aluminum, steel and other manufacturing raw materials have jumped significantly this year, with futures prices increasing over 50 percent compared to the same period last year and spot prices also seeing double-digit growth.
Specifically, steel prices have been repeatedly setting new highs during the same period, according to the China Iron and Steel Association.
Surges in bulk commodity prices are putting pressure on China s manufacturing sector, pushing authorities and industry participants to seek plans to stabilize the market to fend off potential disruptions and risks.
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