Prices rally as sentiment improves

摘要

Seaborne iron ore prices returned to levels above $90/mt CFR in the second week of December, buoyed by stronger futures and optimism around the impact of government stimulus and demand from the infrastructure sector. Iron ore prices typically strengthen in the final month of the year as mills restock ahead of Chinese New Year and the coldest winter months of January and February. This is despite construction activity starting to slow and plentiful supply, as international miners export as much as possible before the end of the year. Further, mills know that supply can drop in Q1 due to cyclones and heavy rain in Australia and Brazil and don't want to be left short of stock.