Optimism about the rapid recovery of Chinese demand, coupled with concerns about Brazil's iron ore supply, pushed iron ore prices into a three-digit era on Wednesday. China's iron ore demand accounts for more than half of the world, while Brazil is the world's second largest supplier of iron ore.

 

According to data from market research firm Fastmarkets MB, the price of 62% iron-bearing iron ore imported from northern China on Wednesday was US$96.95 per ton, slightly lower than the 9-month high touched on Tuesday. On the Dalian Commodity Exchange, iron ore futures prices rose for the sixth consecutive trading day to US$107 per ton, a 20% increase from the beginning of April.

Since the beginning of this year, iron ore prices have been expected by China to invest heavily in infrastructure and construction to revive the economy destroyed by the coronavirus. China accounts for more than 70% of global seaborne iron ore trade.

 

Australia’s Financial Review quoted UBS Group’s global mining director Glyn Lawcock as saying that the decline in port inventories and the rebound in Chinese steel mill output supported iron ore prices, but concerns about Brazil’s supply are the main reason for the recent rise in iron ore prices. the reason.

 

Lawcock pointed out, "Last year Brazil exported about 350 million tons of iron ore, which is 6.5 million tons per week. But this year, Brazil only shipped more than 6 million tons in one week. In the past three weeks, they Of exports are less than 4.5 million tons."

 

He added, “Everyone is asking, what’s wrong with Brazil? If you put it in the first quarter, you might be able to blame the weather and the rainy season, but now the weather is no longer a problem. The number of people with new crown infections in Brazil is now the highest in the world Fourth, it's still upgrading. So I think it's a drop in production caused by the shutdown. After all, mining cannot be done through home and remote work."