Iron ore price rises as China port inventory shrinks

If China wants to temper the red-hot iron ore and steel sectors it's likely going to have to do more than just talk and tinker around the margins.

The iron ore price surged to a record $237.57 per tonne in New York on Wednesday as strong Chinese demand continued to outpace supply, but analysts were not convinced the price run had legs.

“High iron ore prices in early 2021 are unsustainable, but market fundamentals remain strong," says Moody’s senior VP Barbara Mattos.

Bloomberg reported earlier this week that smaller LNG buyers in China have been told to avoid taking Australian cargoes.

China's main copper smelters increased production in April by 0.85% from the previous month.

China will monitor changes in overseas and domestic markets and effectively cope with a fast increase in commodity prices, the state council said.

The Dalian Commodity Exchange vowed to “severely punish” unspecified violations in iron ore trading.

Chinese refined metal imports have been trending lower since the start of the year and continued doing so in April.

Prices have rallied 34% so far this year as miners struggle to meet robust demand from the nation’s economic rebound.