The price for raw iron ore is on the rise after reports that Australian exports will be lower this year. This would mean for the first time in around twenty years an annual decline in exports.
According to the Australian government, global shipments of ore will be more than 4 percent lower this year. In addition to the Australian export decline, Brazil will also suffer a contraction. More ore will be shipped from China, the world’s largest ore supplier. In China there are various signs of tightness in the market and the state of the steel industry. The steel and ore stocks have been falling for twelve weeks in a row, which is the cause of the longest contraction since 2012.
So-called futures for ore rose Monday to 6.3 percent to nearly $ 120 per ton in Singapore. In the second quarter of this year, the largest price increase for ore had already been seen since 2016. Australia now assumes ‘free-on-board prices’ which are 80 percent higher at 80.10 per tonne than in an earlier estimate. .
Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]
