Historic global steel price rally sweeps iron ore to all-time high

摘要

The staggering recovery of global steel demand last year has driven the market for its main ingredient, iron ore, soaring in recent months, and helped S&P Global Platts 62%-Fe IODEX CFR China reach an all-time high of $193.85/dmt on April 27. The red dirt has seen its price more than double over the past 12 months from $83.40/dmt on April 27, 2020. And as the world turns to infrastructure to stimulate its post COVID-19 recovery, and as other industrial metals show comparable rises, it could indeed be reasonable to ask how much further this rally could go. What we are witnessing is the continuation of a demand-driven trend that began exactly a year ago, when China saw a fast rebound in economic activity following its rapid exit from lockdown, which was immediately matched by a sudden spike in steel prices.