Iron ore, the steelmaking ingredient that is the main source of profits for some of the world’s biggest miners, has hit a record high as Chinese steel mills crank up production to make the most of high margins, while copper also closes in on a new peak, reported the Financial Times.
Iron ore hit $193.85 a ton on Tuesday, according to a price assessment from S&P Global Platts, surpassing its previous record of $193 set during the 2011 commodity boom. Iron ore has gained 130% in the past year and copper 90%.
“Steel prices are being helped by very strong demand in China and globally as we continue to normalize post-Covid,” said Ben Cleary, a partner at Tribeca Investment Partners, a boutique hedge fund.