Latest price spikes puzzle analysts as fundamentals still point to relatively subdued outlook
10 December 2019 - 18:41Iron ore’s surprise surge above $90 a tonne amid optimism on the outlook for Chinese demand has sowed consternation among market watchers, with some questioning the move as prices fluctuated on Tuesday.
Earlier in 2019, prices blasted to multiyear highs after a major supply outage in Brazil, before retreating on signs of higher shipments. The recent spike came amid pledges from China’s leadership to strengthen key infrastructure spending. Investors have interpreted a recent Politburo statement on the economy as bullish for infrastructure, said Guttierez.
“We’ve definitely seen some less-worse data come out from China and that’s precipitated a bit of a bounce,” said Daniel Hynes, senior commodities strategist at Australia & New Zealand Banking Group. “The upside does look limited from here, though. There’s not much sign of any meaningful pickup in demand over the longer term.”
Since the supply shock in the first half that lifted iron ore far above $100, global production has recovered, including from leading miners in Brazil and Australia.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SAA what? Why Gordhan’s suddenly gone soft'Over the past few years the minister of public enterprises has more or less mastered his Mr Cleanup act.'
Read more »
Sanofi buys Synthorx for $2.5bnAcquisition at triple market value accelerates French drug maker's push into cancer drugs under new CEO
Read more »
Asian shares slip as traders worry about looming tariff deadlineEquity markets tick down as investors wait for positive signs from US, UK and EU outcomes
Read more »
Tesco weighs exiting Malaysia and ThailandUK multinational grocer may be shifting strategy by further retreating to its core domestic market
Read more »
LETTER: Absurd speculationSome within the governing ANC want to see the president gone
Read more »
No more expensive flights, security upgrades for MPsGone are the days of Ministers, Premiers and Mayors living in the laps of luxury.
Read more »