11/19/2022 0 Comments Industrial metal supply![]() ![]() ![]() Still, Kartsonas expects iron ore prices to “gradually decline” toward $120 as Vale “will mostly deliver this year on its promises.” Vale estimated iron ore production volume of 315 to 335 metric tons in 2021, up from 300 to 305 metric tons last year. Hasn’t been able to fully recover following a 2019 fatal dam failure that halted output at a key mine. Iron ore supplies remain constrained, said John Kartsonas of Breakwave Advisors, the adviser for shipping exchange-traded fund Breakwave Dry Bulk ShippingĪustralia and Brazil account for almost 90% of iron ore imports into China, and while Australia is exporting at record high rates, 2020 Brazil exports were the lowest in a decade, he said. It was at $167.95 per dry metric ton on Jan. The S&P Global Platts IODEX, the spot price of 62% iron-fines delivered to China, hit its highest since May 2011 at $176.90 per dry metric ton on Dec. Prices based on the most-active futures contract gained about 70% in 2020. Settled at $169.31 per dry metric ton on Thursday, the highest finish since September 2011, according to Dow Jones Market Data. The January futures contract for 62% iron-ore fines delivered to China on Comex Meanwhile, iron ore, which is used to produce steel, climbed to a more-than-9-year high. May “stall” as new production capacity comes online as planned, and millĬapacity utilization rates continue to increase throughout 2021, said MetalMiner’s Last year, Cleveland-Cliffs Inc.Ĭould continue to rise into at least the first quarter of the year, but prices Steel producers showed “discipline,” avoiding overproduction and the industry has continued to consolidate, which furthers that supply constraint, Bassuk said. Global steel demand this year is expected to climb by 4.1% from the 2020 level, according to the World Steel Association. 26, was down by an estimated 17.7% from the 2019 year to date period, he said, citing data from the American Iron and Steel Institute.ĭespite economic woes from the pandemic, steel prices rebounded quickly given the “speed at which the steel producers reduced capacity, which reduced supply, while at the same time demand” from the auto industry, building and construction, “rebounded much more quickly,” said Greg Bassuk, a co-founder and liquid alternatives manager at AXS Investments, which provides the AXS Sustainable Income fund steel production in 2020, year to date as of the week ended Dec. 5, not far from the record of $1,184 seen in July 2008, according to data from S&P Global Platts.įor steel, “it is Economics 101 at this point, not enough supply and too much demand,” said Michael Fitzgerald, managing editor, ferrous metals U.S., at S&P Global Platts. hot-rolled coil price at $1,112.23 per metric ton on Jan. finished steel prices traded near their all-time highs, with the daily Platts U.S. Read: Palladium eyes fresh record highs in 2021 with travel set to climb The prospects for some of the metals further out, however, look brighter than others. ![]()
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