Iron ore prices surged past $150 a tonne in December, reaching their highest level since March 2013 as strong Chinese steel demand collided with tightening seaborne supply. The benchmark 62% iron fines price rose to $150.16 a tonne on 9 December, up nearly 14% since the start of the month, while higher-grade 65% fines climbed above $162 a tonne. The rally was fuelled by robust steel output in China, lower shipments from Australia and Brazil in November, and a cut to production guidance by Vale, the world's largest iron ore miner, which lowered its 2020 target to 300-305 million tonnes. Chinese iron ore futures also hit record highs, crossing 1,000 yuan a tonne for the first time. The surge pushed shares in Australian miners BHP and Rio Tinto to multi-year highs, but it squeezed margins for steelmakers outside China, which faced record raw material costs just as finished steel demand was recovering.
Source: ShareCafe — https://www.sharecafe.com.au/2020/12/10/iron-ore-runs-hot-as-miners-rally-to-records/
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