Iron ore prices, which have surged to near four-month highs amid restocking by some Asian steel mills, are likely to be capped due to slower economic growth in China, its efforts to cut steel overcapacity and additional supplies of the commodity, the Wall Street Journal reported Thursday. The benchmark for iron ore is at its highest since Aug. 15 after falling just five of the past 25 trading days. Imports of ore with 62 percent iron content are selling for US$139.70 a metric ton at China’s Tianjin port, 20 percent higher than six months ago, the report said, citing data from The Steel Index. That said, further gains are likely to be limited going forward as restocking by steel mills eases, it suggested.
– Contact HKEJ at [email protected]