Iron ore price surges as steel rally fires up demand

Iron ore prices have risen to record highs in recent weeks, largely because supply has not been able to keep pace with demand in China, where crude steel production has grown by 30% over the past five years.

Expectations are building that benchmark prices can get to $200 a tonne — topping the record $194 hit more than a decade ago — as Chinese steelmakers ramp up production in defiance of government attempts to rein in output to control the industry’s carbon emissions.
Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were changing hands for $192.54 a tonne on Wednesday, up 1.95% from the previous day, according to Fastmarkets MB.