Iron Ore Surges Into Bull Market as Mills Come Off the Sidelines
- Commodity has advanced more than 20% from low earlier in June
- Goldman warns prices may slump with sub-$50 outlook for 2018
Iron Ore Surges Into Bull Market
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Iron ore’s bear market lasted all but three months. The raw material has rallied back into bull-market territory right at the end of the first half on a surge driven by mills in China boosting purchases to replenish inventories, with higher-grade ore in demand.
Ore with 62 percent content delivered to Qingdao rose 3.8 percent to $64.71 a dry metric ton on Thursday, the highest since May 4, according to Metal Bulletin Ltd. Prices have gained more than 20 percent from the year-low of $53.36 hit just two-and-a-half weeks ago, meeting the common bull-market definition. On Friday, the price rose 0.3 percent to $64.95.