Supported by strong demand from China market, Australian iron ore price has risen to a seven-year high, and it is expected to keep bullish by the end of this year, showed data from the Trading Economics.
The price of Australian iron ore increased to $137/t in early December, setting a new high since January 2014, data showed.
Iron ore prices will continue being supported by strong steel demand in China, as the country's infrastructure and real estate industries are developing fast, the agency said.
In addition, the decline in iron ore inventories at Chinese ports and the planned production expansion at China domestic steel makers will also boost iron ore prices.
Fastmarkets MB data showed that the benchmark iron ore price with 62% Fe went up to $146/t in northern China port on December 4, up 1.3% from the previous week, reaching the peak since March 2013. The cumulative growth is close to 60% this year.
According to customs data, China imported a total of 1.07 billion tonnes of iron ore in the first 11 months, a year-on-year increase of 11%, of which the imports reached 98.15 million tonnes in November, falling 8.05% from the previous year.
In November, Australia's four largest iron ore producers - BHP, FMG Group, Rio Tinto and Roy Hill - exported 68.6 million tonnes of iron ore totally, according to a report from UBS Group.
Of that, iron ore exports of Rio Tinto picked up 2% year on year to 28.3 million tonnes. BHP exported 22.9 million tonnes, up 3% on the year, while FMG's exports slid 6% year on year to 14.5 million tonnes.
Source:sxcoal
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