ASX iron ore producers are in the spotlight today as the commodities price touched another record high overnight.
The iron ore price rose 5% overnight to reach a new record high of US$202.65 a tonne on the S&P Global Platts index today, reported the Australian Financial Review (AFR). It has easily surpassed its previous record of US$193.85 a tonne, set late last month.
As Australia is the largest source of China’s iron ore, the increasing political tensions have meant another boost to the commodities price. Particularly, as China is ramping up its domestic constructions activities and increasing its demand for steel.
The surge in the price of iron ore comes as China’s National Development and Reform Commission released a statement yesterday declaring the nation will halt all activities under the China-Australia Strategic Economic Dialogue.
Australia’s Minister for Trade Dan Tehan said while the commission’s decision was disappointing, Australia remains open to dialogue and engagement with China at the Ministerial level.
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