What a time to be an iron ore miner. Not a substance, perhaps, that gets the pulse racing, but as the key ingredient in steel, and therefore a primary material for the building industry, it’s one that can tell us much about the health of the global economy, and of the miners that supply it.
Iron ore futures hit a two-year high today on the back of a rally in steel prices, amid reports that Chinese ports hold less of the material than previously thought. In the last eight months, the metal has turned from a six-year low of $38 a tonne to around $60. While it’s not quite party time for the iron ore majors – five years ago, the metal was changing hands for $180 a tonne – it’s a far better situation than any of them expected to be in last December.
The ore is not the metal, the metal is not the ore.
It is the iron ore price which is $38 or $60, not the metal price.
Seriously folks, try to just get the very basics right…..