Insights

Iron ore price hits another record high as tensions with China increase

The price of iron ore has reached a new record high today as increasing demand from China clashes with its rising tensions with Australia.
The post Iron ore price hits another record high as tensions with China increase appeared first on The Motley Fool Australia. –

man holding hard hat and giving thumbs up representing rising mining asx share price

ASX iron ore producers are in the spotlight today as the commodities price touched another record high overnight.

The iron ore price rose 5% overnight to reach a new record high of US$202.65 a tonne on the S&P Global Platts index today, reported the Australian Financial Review (AFR). It has easily surpassed its previous record of US$193.85 a tonne, set late last month.

As Australia is the largest source of China’s iron ore, the increasing political tensions have meant another boost to the commodities price. Particularly, as China is ramping up its domestic constructions activities and increasing its demand for steel.

New tensions driving iron ore

The surge in the price of iron ore comes as China’s National Development and Reform Commission released a statement yesterday declaring the nation will halt all activities under the China-Australia Strategic Economic Dialogue. 

Australia’s Minister for Trade Dan Tehan said while the commission’s decision was disappointing, Australia remains open to dialogue and engagement with China at the Ministerial level.

It is disappointing to hear that the NDRC has made this decision. The Strategic Economic Dialogue, which was last held in 2017, is an important forum for Australia and China to work through issues relevant to our economic partnership.

— Dan Tehan (@DanTehanWannon) May 6, 2021

 

S&P Global Platt’s head of iron ore pricing Niki Wang was quoted by the AFR as saying:

A few traders told us they see it as a potential risk on the Australia cargoes supply and suspect the paper market will be pushed up on the news…

While the impact on iron ore business shall be limited from what our sources can see for now, the market really seems to be waiting for clarity.

ASX companies to keep an eye on

We’re yet to see any large reaction from ASX-leading iron ore producers to the commodities record high price.

Shares investors might be inclined to shine the spotlight on iron ore miners including Fortescue Metals Group Limited (ASX: FMG), Rio Tinto Limited (ASX: RIO), and BHP Group Ltd (ASX: BHP).

Today, the Fortescue share price is leading the pack with a 1.2% gain. The Rio share price is the next best, showing a 0.6% gain, while BHP is trailing behind with a share price gain of 0.2% today.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.3%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Iron ore price hits another record high as tensions with China increase appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!