BHP Billiton and Fortescue Metals Group are encouraging that the price of iron ore is showing no signs of slowing down. The 62% iron ore finished last week at $ 79.61 a tonne, about 13% higher than last Monday's closing price.
The profit is in line with Chinese steel prices, which hit a 30-month high after China cut 88 million tonnes of steel production capacity this year. While this is good news for steel prices, it doesn't have to be good news for iron ore. With the decline in steel production in China, the demand for iron ore is also falling.
Despite this, Chinese speculators continue to inflate the price of iron ore artificially higher, without adequate demand, it will plummet when the bubble bursts. But, in the short term, the price of iron ore may well go beyond $ 80 per ton, or perhaps even up to $ 90 per ton. However, the higher becomes already risky, according to experts.
The cost of iron ore can reach $ 90 per ton
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