Iron ore price surges on Brazil covid-19 crisis
Iron ore prices were closing in on triple digits on Wednesday as optimism about a quick recovery in China, where more than half the world’s steel is forged, combined with supply fears from Brazil, the globe’s number two supplier.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were exchanging hands for $96.95 a tonne on Wednesday, just off 9-month highs struck Tuesday. On the Dalian commodities exchanges, iron ore futures climbed for a sixth straight session to $107 a tonne, up 20% from early April.
UBS global head of mining, Glyn Lawcock
Iron ore prices have been underpinned by hopes that China, responsible for more than 70% of the world’s seaborne iron ore trade, will spend massively on infrastructure and construction to revive an economy devastated by the coronavirus.
Australia’s Financial Review quotes UBS’s global head of mining, Glyn Lawcock, as saying falling port stocks and a rebound in Chinese mill output has underpinned prices, but worries about supply from Brazil are behind the latest spike:
“Last year Brazil exported around 350 million tonnes. That’s 6.5 million tonnes a week. They’ve only had one week this year where they shipped above 6 million tonnes. The last three weeks they’ve shipped less than 4.5 million tonnes a week.
“Everyone’s asking the question, what’s wrong in Brazil? The first quarter you can blame weather, the wet season, but now weather is truly behind us as an excuse.
“Brazil is now number four globally in terms of covid cases. It’s really escalated. So I believe absenteeism in the workplace is hurting production.
“You can’t move dirt working from home.”
source: Mining.com
Top News
Glencore in talks to sell Philippine copper smelting unit
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
Norilsk Nickel plans to sell all it produces in 2025
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
India’s record gold import said to be due to calculation error
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Aluminum price falls to one-month low in wider commodity slump
Skeena advances Eskay Creek permitting, unlocks Orion funding
Lure of Anglo’s copper mines could test BHP’s spending resolve
Copper giant Peru foresees another production plateau in 2025
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Lure of Anglo’s copper mines could test BHP’s spending resolve
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Glencore in talks to sell Philippine copper smelting unit
