Iron ore hits record high as commodities continue to boom

The price of iron ore hit a record high on Monday in the latest sign of booming commodity markets, which have gone into overdrive in recent weeks as large economies recover from the pandemic, reported the Financial Times.

The steelmaking ingredient, an important source of income for the mining industry, rose 8.5% to a record high of almost $230 a ton fueled by strong demand from China where mills have cranked up production.

Other commodities also rose sharply, including copper, which hit a record high of $10,747 a ton before paring gains. The increases are part of a broad surge in the cost of raw materials that has lasted more than a year and which is fanning talk of another supercycle — a prolonged period where prices remain significantly above their long-term trend.