CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
The import price of 62% iron ore fines at China’s Tianjin port was $148.70 at tonne on Wednesday, an almost six month high.
The price is up more than 27% from lows struck in October last year when the steelmaking ingredient experienced a mini crash with spot declining from a record high of $180 to $116.
The last time iron ore traded above $150 was mid-October 2011 and the commodity hit a 2012 low of $134 a tonne on February 20 according to Bloomberg data.
China consumes 60% of the 1 billion tonne seaborne global iron ore trade which is dominated by BHP Billiton, Rio Tinto and Vale.
Despite predictions of a severe slowdown in China and lower iron ore prices by rival miners, world number one iron ore producer Brazil’s Vale made very positive comments about the market on Wednesday.
The Financial Times (sub required) reports that Macquarie estimates that China’s steel production reached an annualized rate of 715m tonnes in March – the highest in at least nine months – and quotes another bullish analyst:
“Those arguing about whether China will have a soft or hard landing are missing the point. It has landed already,” said Rob Clifford, equity analyst at Deutsche Bank, in a note to clients.
“Under most growth scenarios – other than an ultra-bearish one – for China, the country will need more steel production capacity.”
The performance of iron ore is contrast to that of copper. The red metal hit 3-month lows on Wednesday falling to $1,018 a tonne on the LME and $3.63 a pound for the May contracts on Comex in New York. Copper futures hit a high of $4.53 a pound in early August last year.
7 Comments
Hedyhannan
There are many iron ore properties in the Fermont Iron District (Labrador Trough) of Quebec, Canada. A new economic mining development plan devised by the Quebec provincial government known as the “plan nord” is beginning and should span about 20 years. Canada is a politically and economically stable and attractive country in which to do business regardless of language. Some junior mining companies with substantial iron ore assets include Champion Minerals Inc. and Fancamp Exploration Ltd.
Valenzuelaortiz
Dear Veeranandagiri, you just need come to Chile and review the list of properties on iron ore. Good look.
Mario Valenzuela Ortiz
Copiapo
Chile
Albertgro
Le escribo de Argentina y estamos con un grupo de inversores interesados en minerales de hiero, arenas, etc. Si me deja su correo se lo agradeceré. Atte. Alberto Alós
Alberto_villa_mena
HOLA ALBERTO ALOS, LE ESCRIBO DE MEXICO Y ME INTERESA TAMBIEN DAR A CONOCER PROYECTOS FERRIFEROS EN MEXICO ATRACTIVOS, COMO ME PUEDO CONTACTAR CON USTED?
SALUDOS.
Veeranandagiri
Nice information. Will be glad to know of mining properties which accept direct investment from India
Veeranandagiri
Thanks
Rasteg
MAYBE YOU SHOULD ALSO THINK PERU AS AN OPTION