China factory, building boom sends iron ore price to 6-year high
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.
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.
That was the highest level for the steelmaking raw material since mid-January 2014 and brings gains for 2020 to over 40%.
A key gauge of economic activity in China – responsible for more than half the world’s steel output and 70% of seaborne iron ore imports – released this week showed rapid expansion of the country’s manufacturing and construction sector in August.
The Caixin manufacturing PMI index rose from 52.8 in July to 53.1 in August, well above analysts’ expectations, which were headed for a decline during what is usually a slow month for industrial production.
