Sandra Ulbrich

Main Menu

  • Palladium
  • US Steel Prices
  • Iron Prices
  • Copper Prices
  • Saving Investment

Sandra Ulbrich

Header Banner

Sandra Ulbrich

  • Palladium
  • US Steel Prices
  • Iron Prices
  • Copper Prices
  • Saving Investment
Iron Prices
Home›Iron Prices›Iron ore price hits record high in Australia amid tensions with China

Iron ore price hits record high in Australia amid tensions with China

By Brian D. Smith
May 20, 2021
0
0



Representative image

Canberra [Australia], May 20 (ANI): The price of iron ore in Australia has reached an all-time high and mining companies’ market shares are reaching new highs amid mounting tensions with China.

The surge has raised concerns about market speculation with Chinese officials, who earlier this month reduced tariffs on some steel inputs as a cooling measure, Nikkei Asia reported.

The deterioration of political ties between China and Australia, linked to issues such as restrictions on Huawei technologies, blocked investment deals and investigations into the origins of the COVID pandemic, has thrown the spotlight on trade iron.

Supply and demand factors now working in favor of miners could change quickly, as ore shipments from other sources disrupted by the COVID-19 pandemic rebound and Chinese steelmakers, the miners’ best customers, under greater pressure to reduce production.

“There are specific peculiarities in the market at the moment,” said James McGlew, executive director of brokerage firm Argonaut, according to Nikkei Asia, adding that “it is volatile, and this has led speculators to jump in as well. on the basic product (iron). “

Iron ore futures hit a record high of $ 233.10 per tonne last week according to S&P Global Platts. Although they have recovered, prices remain well above the average of $ 160 per tonne seen earlier this year and are about double the levels of a year ago.

Over the past year, China has taken steps to block or curb imports of cotton, barley, beef, lobsters, timber and wine from Australia, but not iron. According to trade data, Australia supplies 60 percent of China’s ore imports while China absorbs 70 percent of Australian exports.

After last week’s trade battles, the Dalian and Shanghai commodity exchanges increased margin requirements and trading fees for iron contracts, among other measures. These measures initially caused ore prices to drop to as low as USD 187 per tonne, but the China Iron and Steel Association, representing local producers, called on authorities to go further in curbing speculative activity, has reported Nikkei Asia.

As of Tuesday, iron ore futures were down to around $ 215 per tonne.

In early May, Beijing suspended its activities within the framework of the China-Australia strategic economic dialogue in its latest retaliatory measure. Iron ore prices rose $ 39 per tonne over the next three trading days amid speculation that shipments could be affected.

On Tuesday, China’s National Development and Reform Commission said it would investigate iron ore trading activities while encouraging domestic exploration and the development of new import channels.

Meanwhile, Canberra expects an AUD 30 billion ($ 23.38 billion) tax windfall on record ore exports of $ 104 billion forecast for the year ending June 30, Nikkei Asia reported. (ANI)



Related posts:

  1. CHONGQING IRON (01053) fell significantly by 10.345%. The latest price is HK $ 2.34.
  2. Marvel’s Avengers launches Iron Man MCU Endgame skin
  3. WA budget surplus set to hit record $ 5 billion as iron ore price shields coffers from COVID
  4. Iron ore price recedes as steel slips and BHP shifts into high gear at South Flank

Recent Posts

  • Southern Palladium has delayed secondary listing date on JSE
  • Here are the 10 cheapest stocks in the S&P 500 index
  • Ground Breakers: ‘War drones’ and ‘smart mines’ on Australia’s richest woman’s wishlist
  • Africa’s domestic mining sector not severely affected by Russia sanctions – report
  • Everclear Announces 30th Anniversary Tour and Five New York Concerts

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • March 2021

Categories

  • Copper Prices
  • Iron Prices
  • Palladium
  • Saving Investment
  • US Steel Prices
  • Terms and Conditions
  • Privacy Policy