Summary

Iron prices have spiked over the first half of 2021 on the back of a global COVID recovery and renewed infrastructure spending in China. Now questions are mounting over whether the world’s top producers will be able to supply enough iron to meet market demand, particularly if Beijing decides to keep the stimulus taps open in order to sustain its flagging economic recovery.

 

Background

The world’s top iron ore companies include Vale (Brazil), Rio Tinto (UK-Australia), BHP (Australia), Fortescue Metals Group (Australia), and Anglo American (UK). Many of these companies have been struggling to keep global markets well-supplied, with indications abound of even greater supply-side hurdles ahead, leading to a sustained period of above-average iron prices.