Iron ore prices rose on Tuesday, boosted by strong Chinese demand.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were changing hands for $170.90 a tonne, up 1.43% from the previous trade.
China鈥檚 steel prices also jumped to record highs, on concerns over supply curbs in the world鈥檚 biggest producer and exporter of construction and manufacturing material.
Construction steel rebar鈥檚 May contract on the Shanghai Futures Exchange ended the daytime trading session 2.1% higher at 5,180 yuan ($791) a tonne, after earlier climbing to 5,200 yuan, the highest on record or since 2011.
Prices are expected to halve by the end of next year
Production restrictions in China鈥檚 top-steelmaking city of Tangshan during the peak demand season have brought down stocks at commercial warehouses and created a 鈥渂ullish atmosphere鈥� for the market, Sinosteel Futures analysts said in a note.
Iron ore was the best performing commodity in 2020, thanks to China鈥檚 early emergence from the pandemic and Beijing鈥檚 heavy spending on economic stimulus, particularly infrastructure.
Iron ore price reached its聽highest level since September 2011 in mid-January, 聽at $174.07 per tonne. The benchmark hit an all-time high of $191.70 in February 2011.
Prices are expected to halve by the end of next year and then gradually decline to reach $72 a tonne in real terms by the end of 2026.
(With files from Reuters)