Iron ore price hits new high on fears of short supply

Iron ore’s stunning surge won’t fade anytime soon because buyers remain nervous about being caught short as global demand accelerates amid lingering […]

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Iron ore’s stunning surge won’t fade anytime soon because buyers remain nervous about being caught short as global demand accelerates amid lingering supply threats, according to a veteran commodities trader. “Logic dictates that these are ridiculous prices but fear will continue to keep the scramble going,” said Andrew Glass, Singapore-based founder of Avatar Commodities Ltd. and former head of ferrous trading at Anglo American Plc. Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) hit a new record on Wednesday, up 3.7%, changing hands for US$237.57 a tonne, according to Fastmarkets, MB.
Chinese steelmakers are ramping up production in defiance of government attempts to rein in output to control the industry’s carbon emissions. Stainless steel futures for June delivery jumped 2.2% on the Shanghai bourse to hit an all-time peak of 15,580 yuan a tonne. “Although it’s still a bull market, the rapid price surge in short-term has accumulated risks and there’s possibility for adjustment,” analysts with SinoSteel Futures wrote in a note. Read the complete story on www.Mining.com.

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