The iron ore sector “is very, very hot," Vivek Dhar, commodities analyst at Commonwealth Bank of Australia, said in Bloomberg Television interview. Iron ore futures in Singapore jumped to a record above $226 a ton, while benchmark spot prices climbed to $229.75. Iron ore is the country’s biggest export earner. Those measures have boosted steel prices and profitability at mills, allowing them to better accommodate higher iron ore costs and potentially front-load output ahead of more environmental restrictions. Shipmakers and household-goods manufacturers will eventually be unable to withstand elevated steel prices, the country’s state-run Xinhua News Agency reported on Sunday, citing analysis from the China Iron & Steel Association.

Source: Mint May 10, 2021 14:37 UTC