Iron ore soars to almost $175/t on on the first working day in China
Iron ore price spiked on the first working day in China after the Spring Festival celebration despite supply increase at ports and in the global market.
Speculations on expected demand improvement in spring pushed both raw material and steel futures sharply up, boosting spot prices as well.
Australian iron ore fines 62% Fe soared by $11.25/t to $174.75/t CFR on Thursday, when Chinese insiders started to come back to the market after a week-long national holiday.
Spot prices followed a daily jump of RMB 60/t ($9.3/t) in May contracts on the DCE.
Rebar futures and Tangshan billet have gained RMB 125/t ($19/t) and RMB 130/t ($20.1/t) since February 10.
Major miners have added to these expectations.
BHP Group and FMG have said in their latest financial reports that they anticipate strong demand for iron ore to continue. “Our view is that the market will remain robust for some time,” said FMG CEO Elizabeth Gaines.