A perfect storm of reduced supply and rising demand which has driven the price of iron ore to more than $110 a ton is forecast to keep blowing into next year.
Despite repeated forecasts that the price of the steel-making material is overdue for a correction the latest reading of the iron ore market is for the price to be higher for longer thanks largely to supply and demand effects of the Covid-19 pandemic.
Brazil, one of the world’s biggest iron ore producers, has seen its mining industry buffeted by the public health crisis which has crimped exports while China, the biggest consumer, has lifted imports to meet high demand caused by government economic stimulus to counter the effects of Covid-19.
Investors will get a close look at the effects of the iron ore price on two big exporters next week, firstly in the annual profit report of the world’s biggest diversified miner, BHP Group, followed by world’s leading pure-play iron ore stock, Fortescue Metals.
For the rest of this article: https://www.forbes.com/sites/timtreadgold/2020/08/11/perfect-storm-to-keep-blowing-into-next-year-for-iron-ore-miners/#2abaa5821f31