Iron-ore’s stunning rally this year, underpinned by China’s demand for the steel-making raw material, risks slowing as miners ramp up output.
The industrial material blasted past $120/t on Tuesday, propelled by China’s stimulus to prop up its pandemic-hit economy and supply disruptions that constrained output of the raw material.
Miners, who have gained from the more than 30% jump in iron-ore prices this year, now see the rally as unsustainable. BHP Group expects prices to ease from current levels while volatility remains. That’s similar to view of top producer Vale, which said last month it doesn’t see support for high prices in the short- to medium-term.