Iron Ore booms by 10%

Iron Ore

Iron Ore’s value recorded an increase of over 10%, causing it to sell at a new record high of $226 per ton in Singapore.

While the trigger for the surge in Iron Ore’s value is not clear, financial experts have said that there is a probability that China’s strict environmental guidelines as well as the possibility of Iron Ore dealers distributing the commodity unevenly, paved the way for the value surge.

Iron Ore is a lucrative commodity but it constantly combats with the issue of insufficient supply to meet the high demand that it gets. The commodity conveniently occupies a benchmark spot price of $229.75 in Singapore. It is also Australia’s biggest export earner.

The COVID-19 pandemic reportedly dealt China’s steelmaking industry and makers, a hard blow. The industry is only just picking back up from where it left off. Efforts to reduce carbon emission from steel production have also contributed minimally to the increase of the cost of steel

Financial analysts have predicted that Iron Ore might grow to rub shoulders with Gold and other commodities.

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