Iron ore rises above $ 100 /tonne as supply problems in Brazil coincide with robust demand from the largest steel producer in China.
Spot prices rose to $ 101.05 as Brazil, the world’s second largest exporter, saw a surge in coronavirus infections, raising fears that a pandemic could curb local supplies. In April, mining company Vale cut its annual shipping forecast for bad weather and the impact of the virus on operations. Meanwhile, China’s iron ore port stocks continue to decline.
The industrial product flourished in 2020, even as the coronavirus pandemic has disrupted industrial activity in many countries, although Bloomberg Intelligence was among observers warning that the market could turn over in the second half. In addition to Vale, higher prices will support profitability at BHP Group, Rio Tinto Group and Fortescue Metals Group.