Iron ore imports sees price hike of 69.5% from January to July: data
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Update time : 2021-08-09 17:15:58
China's iron ore imports saw a significant price hike of 69.5 percent from January to July, data with China Customs showed, which experts said was driven by the latest rally in commodity prices due to global monetary easing, a lack of bargaining capability in pricing and speculation by market players.
Industry experts forecast the prices have passed their peak and are not in a position to rise further.
The price rise of iron ore comes with the increase in China and Australian trade, which saw a year-on-year jump of 37.4 percent, in which iron ore trade has accounted for a significant share.
The sharp rise in iron ore prices began in November last year, driven by a collective rally in commodity prices due to global monetary easing, and the irrational international price mechanism that favors the industry monopolists such as Rio Tinto Group.
Iron ore production by VALE of Brazil, was lower than expected in the second quarter, which further exacerbated the tight supply on the market.
However, market analysts believe that the price level of iron ore has passed its peak and is likely to drop in the coming months.
