Iron Ore Price Soars On Jump In Chinese Steel Production
22 April 2016
The iron ore price has continued to surge as fresh data showed an increase in Chinese steel production.
Iron ore soared 6.8 per cent to $US68.70 a tonne overnight. The commodity has jumped 19 per cent in the past four sessions.
Steel production in China increased 3 per cent year-on-year in March, while global steel production reached its highest level since June 2015, according to research from Macquarie.
The increased demand from Chinese steel mills has been boosting prices for the commodity recently, which have now rallied for four straight sessions.
This week, major miners Rio Tinto and BHP Billiton both cut production forecasts, which was another positive for prices.
But both miners have warned that more volatility in prices is likely ahead. BHP minerals boss Mike Henry told Bloomberg that low-cost iron ore output will continue to come to market. The oversupplied market has kept prices comparatively depressed over the last 18 months.
Elsewhere, London-listed miner Anglo American reported a drop in iron ore production for the first quarter, although kept its production guidance unchanged.
In London trade, BHP shares fell 0.9 per cent, while Rio lost 0.8 per cent.
Source : theaustralian.com.au