Iron ore prices opened the current week with a record high since September 2011. On Monday, crude for steel production rose 7.8% to $ 176.9 per ton.
According to the data of S&P Global Platts, since the beginning of the year, the price of jellies has almost doubled. A record raw material price was recorded in February 2011 at $ 193 per ton.
The collapse last week at the Vale SA mine (Corrego do Feijao), which killed one person, fueled concerns in the market over the supply of ore from Brazil (the world's second largest exporter of this raw material after Australia). Operations at the Vale mine have been suspended for 7 days, The Wall Street Journal reports.
In addition, there are concerns about shipments from Australia, where the rainy season begins.
Government support in China is addressed to local steel producers: according to the World Steel Association, in October China increased metal output by 13% year on year, to 92.2 million tons.
Analysts are already revising upward forecasts for iron ore prices. Thus, JP Morgan raised the previous forecast for the average price in 2021 by 20%, to $ 126 per ton. Jefferies Financial Group experts expect to see ore prices in the range of $ 180 to $ 200 per ton in the first quarter of 2021.
By the end of 2021, the price of iron ore should be adjusted to $ 100 per tonne amid a gradual weakening in demand in China and restocking, analysts at Capital Economics predict.