Iron ore futures rise 50% in just three weeks
Iron ore futures are up 50% in just three weeks, reinforcing inflation fears that are spreading around the world.
The rise in iron ore prices – which has jumped 16% this month – is likely to reduce profit margins for steel mills, which are unable to transfer higher costs to sectors such as real estate and construction.
According to Bloomberg, Citigroup expects metal and steel prices to stop rising given the looming demand shock from China’s energy rationing in sectors such as construction and manufacturing.
In today’s trading, iron ore contracts traded in Singapore rose 10%, and futures contracts in Dalian closed 4.6% higher.