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Iron ore price jumps on expectation of global recovery

The iron ore composite made it to $169.36

The iron ore composite is up by 4.3% on Monday as expectations of a global recovery from the coronavirus pandemic are growing.

The iron ore composite made it to $169.36, meaning it is now up by 23.5% over the last month.

The latest jump comes in the wake of a recent surge in the price of the commodity used to make steel, buoyed largely by demand from the Chinese economy.

Justin Smirk, senior economist at Westpac, told the Financial Times that it was more than only China driving demand for steel. “I think the reality is the market’s still incredibly tight, we’ve still got very, very strong steel prices,” Smirk added.

Demand for steel after the lockdown is growing as China is being forced to allocate thee steel it produces to export markets, according to Argus Media. Efforts by the Chinese government to curb the production of steel have also had little impact as it even set a new record for steel production.

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