The firm prices have also prompted the spread between 65% Fe and 62% Fe iron ore fines to reach a historical high
At least four drivers have emerged that will support iron ore prices
, with most market participants thinking that spot prices will likely keep firm until, at least, the end of the first half of the year.
1.Strong economic recovery prompts firmer demand for steel
Finished steel products have been enjoying firm prices in a market environment where demand is outweighing the supply, especially amid ongoing curbs to steelmaking and production cuts
“Supply and demand fundamentals are unlikely to change in the short term. China is still hungry for steel products, especially [because it was] probably the first major economy to recover after suppressing the spread of Covid-19,” a Singapore-based trader said.
China had been especially swift in preventing a resurgence of Covid-19, the Singapore-based trader...