China’s robust steel market continues to push iron ore price to new heights. Moreover, the steelmaking ingredient will not come down from the current elevated level in the short term, analysts predict.
Iron ore resumed its spectacular surge after just one day of a slight decrease, with the benchmark Australian iron ore fines 62% Fe gaining $10.5/t d-o-d and reaching the new record of $237/t CFR, according to insiders. Besides, the deal for Vale’s Brazilian Blend fines 62% Fe was closed at $240/t CFR on May 12, the highest ever level.
China’s steel market resilience remained among the main drivers for iron ore price spike.
“Steelmakers store up iron ore at their inventories to keep output high to meet huge local demand,” a trading source told . Rebar futures and Tangshan billet skyrocketed by RMB 85/t ($13.2/t) and RMB 120/t ($18.7/t) in only one day on strong market fundamentals.
