Iron Ore Price Rises to 14-Month High in Rally Seen as TemporaryMichelle Wiese Bockmann
The price of iron ore delivered to China, the largest importer, climbed to a 14-month high in what Credit Suisse Group AG described as “one last hoorah.”
Ore with 62 percent content at the port of Tianjin rose 3.4 percent to $149.80 per dry metric ton, the highest since Oct. 18, 2011, for an increase of 7.5 percent over the past week, according to the Steel Index.
The steel-making raw material is rebounding from a slump to a near-three year low in September after demand stalled in China, with price swings fueling record trading in iron ore swaps, used to bet or hedge on the future price, in 2012.
“A steady improvement in Chinese demand, and faint stability elsewhere, have created the conditions for one last run up in iron ore prices before new supply causes them to ebb back,” Credit Suisse said in an e-mailed report today.
The first half of 2013 “will be as good as it gets for iron ore prices,” the bank said, forecasting prices to dip from an average $130 a ton in the first quarter to $125 for the next three months.
Buying and selling of iron ore swaps rose to 111.5 million tons in 2012, from 43.4 million tons in 2011, according to data published on the website of SGX AsiaClear, a Singapore-based clearing house.