• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

China’s iron ore prices spike 10% to a record high on supply concerns

5 years ago
in Business, highlights, Home, home-news, latest News, Mining, Trade
2 min read
0 0
0
52
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Iron ore futures on China’s Dalian Commodity Exchange surged by almost 10% on Friday to an all-time high, crossing the 1,000 yuan ($152.95) per ton mark for the first time in history.

A confluence of dwindling iron ore supply, surging steel demand and potential short-term disruptions caused by storms hitting Western Australia have led commodity analysts to raise concerns.

Lower supply estimates from Vale, the world’s second-largest iron ore producer, have furthered these fears, with the Brazilian company recently curbing its 2020 production guidance and reducing its guidance for next year.

Meanwhile, November shipments from Brazil to the rest of the world fell to a six-month low.

Erik Hedborg, senior analyst at commodity firm CRU, told CNBC Friday that China’s strong economic performance and infrastructure stimulus had led to a surge in demand, running down already-low inventories and tightening market conditions.

In tandem, seaborne supply from iron ore powerhouses Australia and Brazil has also diminished.

Australia accounted for 58% of the world’s total seaborne iron ore supply in 2019, according to the World Steel Association, much of which is exported to China. Brazil accounted for 23%.

RelatedPosts

Tullow Oil Posts $61 Million Loss for H1 2025 on Lower Oil Prices, Reduced Output

A Turning Point for Ghana’s Payments Industry: Why Clara’s Appointment at GHiPSS is Exactly What the Future Demands 

Appiah Adomako Writes: Why Government Must Take Interest in Who Acquires Shoprite Stores in Ghana

“There is now a tropical storm approaching the coast where all the iron ore is shipped from, and two of the biggest ports in Australia have now been shut, and they together account for just over half of global iron ore supply,” Hedborg added.

A low pressure weather system has already arrived on the Western Australia coast and another is on the way, with residents advised to brace for gale force winds and high tides.

Hedborg suggested that China’s strong demand is likely to endure, with persistently low inventories causing widespread concern for Chinese steelmakers, while the ebb in overseas supply will also last for some time.

Iron ore is a raw material used to make steel, which itself is utilized in the creation of high-rise buildings and mass transit systems.

“We are going to see lower production from Brazil than people had expected, so that is going to continue to 2021, and we are seeing issues to restart mines in Brazil, for example, and Vale will remain operating at reduced levels in the coming year,” he said.

While the turbulent Australian weather may be more short term, Hedborg highlighted that the first quarter is typically more prone to weather disruption from events such as tropical cyclones.

“This right now is a sign that we could see a pretty problematic cyclone season in Australia,” he added.

A group of Chinese steel producers on Friday called on the country’s market regulator and securities regulator to investigate the recent spike in iron ore prices, according to Reuters, claiming they had “deviated from the supply and demand fundamentals.”

Source: cnbc
Via: norvanreports
Tags: AustraliaBrazilChinaDalian Commodity ExchangeIron ore
No Result
View All Result

Highlights

Cocoa Farmers to Protest Against GHS 3,228 New Farmgate Price on August 11, Demand GHS 4,000 per Bag

Top 10 African Countries With the Weakest Currencies in July 2025

U.S. Demands $15,000 Deposit for Visa Applicants From Zambia and Malawi

BoG Governor Urges Banks to Rethink Business Models as Interest Rates Decline

GSE-CI Climbs to 7,040.46 Points as Market Cap Rises by GHS294.3m Despite Trade Slowdown

EOCO Seizes Shatta Wale’s Lamborghini Linked to US Convicted Fraudster Nana Amuah

Trending

Business

Tullow Oil Posts $61 Million Loss for H1 2025 on Lower Oil Prices, Reduced Output

August 6, 2025

Tullow Oil Posts $61 Million Loss for H1 2025 on Lower Oil Prices, Reduced Output Tullow Oil...

A Turning Point for Ghana’s Payments Industry: Why Clara’s Appointment at GHiPSS is Exactly What the Future Demands 

August 6, 2025

Appiah Adomako Writes: Why Government Must Take Interest in Who Acquires Shoprite Stores in Ghana

August 6, 2025

Cocoa Farmers to Protest Against GHS 3,228 New Farmgate Price on August 11, Demand GHS 4,000 per Bag

August 6, 2025

Top 10 African Countries With the Weakest Currencies in July 2025

August 6, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.