US bars more food, metal imports over China’s alleged forced labor
US authorities say Chinese authorities have established internment camps for Uyghurs and other religious and ethnic minority groups.
The import price of 62% Fe content ore at the port of Tianjin jumped 4.5% to $74.20 per dry metric tonne on Thursday as Donald Trump’s victory in the US presidential elections add fuel to the fire of iron ore’s almost a month of unbroken gains.
According to data from The Steel Index it’s the highest level for the Chinese benchmark price since November 7, 2014 with gains since the eve of the election now topping 11%. Year to date the price of the steelmaking raw material is up 72% after doubling in value from near-decade lows in December last year.
The rally comes on the back of Trump’s general support for the extractive industries and his pledge during his acceptance speech for fiscal spending geared towards rebuilding the country’s infrastructure.
The Trump administration is likely introduce a spending program of $500 billion when it takes office next year
The Trump administration is likely introduce a spending program of $500 billion when it takes office next year with the president elect promising as much as $1 trillion over ten years to rebuild roads, bridges, airports, hospitals and schools.
Stocks of the world’s top producers have all rallied post the Trump triumph with North America’s number one iron ore miner Cliffs Natural Resources up a whopping 17% on Wednesday and gaining a further 4.3% in pre-market trading in New York on Thursday.
The world’s largest iron ore miner, Brazil’s Vale, jump looked set for another jump in value on Thursday to add to its 13.6% gain this week. Anglo-Australian giants BHP Billiton and Rio Tinto made the most of the rally in iron ore, coal and base metals with both stocks adding 12% in value in London since the election. World number four Fortescue Metals Group shares rose 10% in Sydney while South Africa’s Kumba Iron Ore soared 15% in Johannesburg.
Source: The Steel Index
Metallurgical coal’s rise this year has been even more dramatic than that of iron ore and trading at $307.20 a tonne on Tuesday, the steelmaking ingredient is up 22% just over the last month.
According to data provided by the Steel Index premium Australia hard coking coal prices are up more than fourfold since hitting multi-year lows around $70 a tonne in November last year.
The coal rally was also spurred by supply issues after Beijing’s decision to limit coal mines’ operating days to 276 or fewer a year from 330 before as it seeks to restructure the industry. Safety closures and weather related supply curbs in China and Australia only added fuel to the fire.
In 2011 floods in key export region in Queensland saw the coking coal price touch an all-time high $335 a tonne. Iron ore’s high point was a month later at $191.90 a tonne.
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Donald Trump wants to focus the economy of US. He will be prioritize the American should give the job to lessen the jobless in US.