The iron ore complex continued to rise on speculation yesterday, with spot prices lifting well above $160USD per ton, while Dalian futures continued to put on gains, despite the latest five year plan from Beijing supposedly putting a dampener on steel demand. Here’s the latest prices and charts:
Trading Economics reckon there will finally be an “eventual drop” in iron ore prices this calendar year. From AustralianMining:
Trading Economics recorded a price of $US161.80 on New Year’s Day before spiking to $US167.04 on January 2. However, this is still below Trading Economics’ recorded price high of $US172 on December 21, suggesting a slow decrease in prices for the commodity.
It also noted the active status of iron ore during the tail end of 2020, with the Dalian Commodity Exchange iron ore futures gaining almost 40 per cent during the final quarter of the calendar year.
Trading Economics also expects an eventual drop in iron ore prices in 2021 and beyond.
“Iron ore is expected to trade at $US151.51 per tonne by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations,” Trading Economics stated. Looking forward, we estimate it to trade at $US132.33 in 12 months’ time.”
Last November, iron ore recorded an all-time high price exceeding $US200 per tonne.