{"id":1205503,"date":"2020-09-03T12:32:33","date_gmt":"2020-09-03T17:32:33","guid":{"rendered":"https:\/\/www.mining.com\/?p=1034654"},"modified":"2020-09-03T12:32:33","modified_gmt":"2020-09-03T17:32:33","slug":"china-factory-building-boom-sends-iron-ore-price-to-6-year-high","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1205503","title":{"rendered":"China factory, building boom sends iron ore price to 6-year high"},"content":{"rendered":"

Iron ore prices hit six-and-a-half year highs on Thursday as the Chinese construction and manufacturing sector experiences levels of activity last seen almost a decade ago.<\/p>\n

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $129.92 a tonne on Tuesday, up 2.1% on the day.<\/p>\n

That was the highest level for the steelmaking raw material since mid-January 2014 and brings gains for 2020 to over 40%.<\/p>\n

\n
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Source: Capital Economics<\/figcaption><\/figure>\n<\/div>\n

A key gauge of  economic activity in China \u2013 responsible for more than half the world\u2019s steel output and 70% of seaborne iron ore imports \u2013 released this week showed rapid  expansion of the country\u2019s manufacturing and construction sector in August. <\/p>\n

The Caixin manufacturing PMI index rose from 52.8 in July to 53.1 in August, well above analysts\u2019 expectations, which were for a decline during what is usually a slow month for industrial production. <\/p>\n

A reading above 50 indicates expansion and August\u2019s numbers were the highest since January 2011. <\/p>\n

While the official PMIs released by the Chinese government showed a slight drop in activity, the Caixin index is usually seen as a more reliable gauge as the survey covers a greater number of private and smaller companies than Beijing\u2019s measure skewed towards state-owned enterprises.<\/p>\n

Rest of the world catching up<\/h2>\n

Capital Economics notes that the export orders component of the manufacturing PMI rose above 50 for the first time this year on the back of recovering foreign demand.<\/p>\n

The London-based research company says this suggests that foreign demand is now beginning to catch up to Chinese domestic demand and hints at a further acceleration in export growth in the coming months. <\/p>\n

While China\u2019s factories are humming, spending on infrastructure has rocketed. <\/p>\n

Since the outbreak of the pandemic, authorities have issued 4.75 trillion yuan ($683 billion) in local and national debt with most of that earmarked for infrastructure projects., lifting construction PMI\u2019s above 60.<\/p>\n","protected":false},"excerpt":{"rendered":"

Iron ore price rally continues after China’s manufacturing sector hits levels last seen January 2011 and $680 billion infrastructure spending accelerates.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1205503"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1205503"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1205503\/revisions"}],"predecessor-version":[{"id":1205524,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1205503\/revisions\/1205524"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1205503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1205503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1205503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}