Iron-ore futures leaped higher as trading opened on Monday, extending a record run amid rampant Chinese demand and a wider surge in commodity prices as the global economy recovers.
Futures in Singapore jumped more than 10% to hit a fresh record high of $226 a ton. The steelmaking raw material is surging as strong demand from top buyer China leaves supplies stretched. Prices breached $200 for the first time only last week.
“This sector is very, very hot, and just when China’s steel demand impulse will ease is perhaps the biggest question of 2021,” Vivek Dhar, commodities analyst at Commonwealth Bank of Australia, said in Bloomberg Television interview. “Supply is still not able to meet that strong demand.”