11 Hrs
Source:
الاقتصادية
Iron ore surpasses $100 on Chinese demand cues
Iron ore prices surpassed the $100 per ton level for the first time in seven weeks, supported by rising shipping costs and expectations that steel mills in China will start rebuilding their inventories ahead of the October National Day holiday. Futures contracts for the ore rose to as high as $101.10 per ton in Singapore, driven by the momentum from investors closing out positions that were betting on falling prices, which in turn increased demand for the raw material. However, this rise does not fully reflect an improvement in market fundamentals, as questions remain about the actual strength of steel demand in China. Nonetheless, the increased demand from steel mills and potential stock replenishing ahead of the holiday bolster expectations that prices will stay above the $100 mark. Additionally, the surge in maritime shipping costs, reaching their highest levels in five years, temporarily supported the price, although the market remains sensitive to actual demand movements and investor repositioning. The market is awaiting Chinese production and inventory data, as sustained real demand and rising transportation costs could lead to further price increases. Conversely, a decline in demand or increased supply might push prices back below $100.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)