Iron ore's latest jump lifts global miners higher
Oct. 11, 2021 8:01 AM ET Vale S.A. (VALE), BHP, RIO, XMT, NUE, CLF, FSUMFBy: Carl Surran, SA News Editor1 Comment
Train loaded with brown hematite iron ore in hills
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Global miners are poised for strong gains today as iron ore prices jumped 10% in Singapore overnight, extending iron ore's surge since a September low to nearly 50%.
Iron ore's big three are all higher pre-market - VALE +2.6%, BHP +2.7%, RIO +3.2% - as well as steel producers including X +1.9%, MT +4.7%, NUE +1.6% and CLF +1.8%.
Bloomberg reports futures in Singapore surged 10% to $137.25/metric ton and prices in Dalian rose 4.8%.
Rebar margins in China rose in late September, Bloomberg reports, citing a Mysteel survey of 91 blast furnaces mills in the country, while daily crude steel production in early October is expected to rise 0.6% vs. late September levels to 2.6M tons.
China's steel production restrictions may lighten up heading into 2022 to meet strong demand, Fortescue (OTCQX:FSUMF) CEO Elizabeth Gaines reportedly said last week at the Financial Times Mining Summit.
Concerns over Vale are "overblown," and the company's buyback program and strong dividend show commitment to shareholders, Moonshot Equity Analysis writes in a bullish analysis posted recently on Seeking Alpha.
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