Iron Ore’s ‘Ridiculous’ Prices to Stay as Fear Grips Commodities
- Scramble for material will continue, says ex-Anglo executive
- Prices surge to fresh record highs in Singapore, China
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Iron ore’s stunning surge won’t fade anytime soon because buyers remain nervous about being caught short as global demand accelerates amid lingering supply threats, according to a veteran commodities trader.
The steelmaking material soared past $230 a ton Wednesday to a fresh record for Singapore futures, amid a broadening commodities boom. While steel demand and production are strengthening, many analysts argue market fundamentals alone don’t justify such high prices. That won’t halt further gains, according to Andrew Glass, Singapore-based founder of Avatar Commodities Ltd.