Citi says the recent rally in the iron ore price could be extended if China ramps up its policy stimulus, tipping the steel-making commodity to hit $US130 a tonne by the end of the year.
Iron ore prices this week have rallied to the highest level in more than five weeks amid hopes for stronger Chinese demand. Vale SA, one of the top iron ore producers, also said there were upside risks to prices after China’s government clearly signalled support for infrastructure activity.
Singapore iron ore futures traded higher on Wednesday afternoon, climbing 1.1 per cent to $US120.45 a tonne on the December contract. Dalian futures rose 2.1 per cent to $US134.44 a tonne.
Alien Metals Ltd (LON:UFO) is a global minerals exploration and development company that will shortly make the transition to iron ore producer. The company was formed from Arian Silver in late 2018, retaining some of the companies more valuable Mexican projects before embarking on an acquisition led strategy, headed up by an excellent geological team and targeted entirely on Western Australia.