Demand is also a factor, with Chinese steel production running at a record annualized rate of more than one billion tonnes for the first time. The combination of Brazil's problems and surprisingly strong Chinese steel production during a trade war with the U.S. could soon see the iron ore price move back above $100/t, and stay there for some time. Analysts at J.P. Morgan, an investment bank, are the first to note the record rate of Chinese steel production which reached 85 million tons in April, for an annualized 1035m/t, up 11% year-on-year. "In our view iron ore prices are likely to remain well supported over the next three-to-six months. More Problems In BrazilThose comments were made before more problems in Brazil were revealed by the country's dominant iron ore producer, Vale.

Source: Forbes May 17, 2019 06:56 UTC