Alaska Air orders 13 Boeing 737 MAX aircraft as travel demand rebounds


‘Ridiculous’ iron ore prices will stick around as fear grips commodities

(Bloomberg) – The staggering surge in iron ore won’t fade anytime soon as buyers remain nervous about being caught off guard as global demand accelerates amid continued threats from the offer, according to a seasoned commodity trader. new record for Singapore futures, amid an expanding commodity boom. As steel demand and production strengthen, many analysts argue that market fundamentals alone do not justify such high prices. That won’t end further gains, according to Andrew Glass, founder of Singapore-based Avatar Commodities Ltd.. to the big miner Anglo American Plc, which has been trading commodities since the 1990s. “There is concern that you won’t be able to secure the logistics and resources you need – $ 220 is expensive, but it’s a lot more expensive if you have to close a factory because you can’t get the materials. ” Industrials and shipping costs are booming as buyers rush to secure raw materials, with global industries from manufacturing to construction re-bracing as the pandemic subsides. This adds to strong demand from China, where high steel margins support high iron ore prices. According to Oversea-Chinese Banking Corp., China’s steel and iron ore futures also hit record highs on Wednesday. The country’s steelmakers are ramping up production in defiance of government attempts to limit production to control the industry’s carbon emissions, while strong profit margins allow factories to better cope with soaring input costs. is an incredible motivator and the prices reflect the fear, ”said Glass. “You see the fear more broadly with gold prices going up, the dollar going down, there is a flight to safety, and there is some fear fueling the commodity markets.” China relies on just two countries – Brazil and Australia – – for 80% of its iron ore imports. Brazil is grappling with a deadly coronavirus outbreak, and the Covid-19 variant is of concern around the world. Meanwhile, China’s frayed ties to Australia have added another element of risk to the market: “From Brazil these boats are 40 days away,” Glass said. “So no more problems in Brazil because of the virus, you better make sure you are well covered. And if the policy between Australia and China gets to the point of creating a problem with Australian supply, and there is also a problem with Brazil, then security of supply becomes very, very important. Singapore iron ore rose 5.7% to a record high of $ 233.55 a tonne and traded at $ 232.20 at 2:25 pm local time. Iron ore on China’s Dalian Stock Exchange and steel rebar in Shanghai also hit new all-time highs.

About William G.

Check Also

El Salvador to Inaugurate Bitcoin City Backed by $ 1 Billion Bitcoin Bonds By Cointelegraph

© Reuters. El Salvador continues to lead the (BTC) adoption campaign as President Nayib Bukele …