Commodities
Iron Ore’s Unexpected Rally Shows Pockets of China Strength
- Steelmaking material has rallied despite real estate crunch
- Chinese steel demand is being supported by other industries
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The one commodity that should be getting hammered by China’s worsening property crisis is actually doing rather well.
Iron ore climbed to its highest in a month last week after a rally that has defied deepening gloom over China’s debt-laden economy. Prices have largely kept above the key $100-a-ton threshold this year despite waves of worrying news from the real estate sector, which in more normal years makes up about 40% of demand.