Iron ore has been on a bullish market for over two years, and it is not likely to end soon, says Goldman Sachs.
- The bull run started with a supply shock from the Brumadinho dam disaster in 2019. Today, it is a “material bull market”. Iron ore prices soared after the occurrence of the catastrophe.
- Nicholas Snowdon, the head of base metals and bulks research at Goldman Sachs stated that the prices are now being backed by strong demand and suppliers reserved in not increasing production.
- China’s benchmark iron ore futures rose hitting record highs this year. Dalian Commodity Exchange’s active iron ore futures contract rose by 1.88% to 1,241 yuan on Friday.
Demand for iron ore as a raw material used in making steel has been strong and the trend is expected to continue into 2022.
EUR USD slips -0.03%, FEF1! Gains 0.55%.
Source: CNBC.
