Australian mining stocks soared to pre-crisis levels on Tuesday after another jump in iron ore prices. Rio Tinto, one of the leaders in the global mining industry, has been selling at its highest value since 2008, when it was at its all-time high. Since the beginning of the year, Rio Tinto is up 36 percent, showing an average daily gain of 2.2 percent.
On Tuesday, iron ore futures in China reached a new record high. Iron ore stocks in Chinese ports fell to 127.8 million tonnes, the lowest level since 2017 as of May 24, amid limited maritime traffic and continued purchases by traders and steel producers.
The best-selling iron ore contract in September 2019 on the Dalian Commodity Exchange rose 2.8 percent to 774.5 yuan (roughly $ 112.18) per tonne in early trading on Tuesday, up 1.2 percent as of 02:43 GMT. This was the highest figure since the launch of Dalian Iron Ore Futures in 2013.
Steel production in China, the world's largest producer and consumer of the alloy, rose to 85.0 million tonnes in April, up 12.7 percent from a year ago, data from the World Steel Association showed on Monday. p>
At the same time, fears of a further increase in the shortage of Brazilian raw materials in the world market are growing after Vale reported on safety problems at another tailings dam at its iron ore complex in Brookutu.
