While the near-term prospects for prices appear to be slanted lower, commodity analysts at the Commonwealth Bank suggest strong Chinese demand, coupled with ongoing supply disruptions from Vale’s Brucutu mining complex in Brazil, may be enough to push the benchmark price above the $100 tonne levels in the not too distant future.
“The suspension of Vale’s Brucutu iron ore mine opens the door for iron ore prices to rise to $100 a tonne, said Vivek Dhar, Mining and Energy Commodities Analyst at the Commonwealth Bank.
“Demand conditions look more promising now, especially with Chinese steel mill margins rising through 2019. Combined with rising steel operating rates in Tangshan and falling iron ore port stockpiles, the ingredients may finally be right for iron ore to hit $100.”
Anglo Pacific Group (LON:APF) has a diverse portfolio of assets in low-risk jurisdictions and is the only listed company on the London Stock Exchange focused on royalties connected with the mining of natural resources.
