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The the price of iron the record was set on Monday by the latest signs of a rise in stock markets, as it has gained too much strength in recent weeks as large economies have recovered from the pandemic.
The steel component, a major source of revenue for the mining industry, rose 8.5 percent to a record nearly $ 230. Great demand from China where the mills have achieved production.
Other products also rose sharply, including copper, which hit a record $ 10,747 per tonne before distributing profits. The rise is part of a large increase in the cost of commodities that has lasted more than a year, which is being debated around another supercycle – the long-term, where prices remain above the long-term trend.
The the price of wood it has also set a record as U.S. sawmills are struggling to keep pace with demand for the peak home construction season this summer.
“Signs of commodity demand are being thrown at all cylinders in the world’s economic power plants amid synchronized recovery,” said Bart Melek, head of commodity strategy at TD Securities.
China’s strong demand, the world’s largest consumer of raw materials, international spending on post-pandemic recovery programs, supply disruptions and high commitments to the green energy transition explain the price of raw materials.
A weaker U.S. dollar has also boosted commodities and moved investors to supply assets that could act as a hedge against inflation.
The S&P GSCI spot index, which tracks 24 commodity price movements, is up 26% this year.
Strong demand from investors pushed assets held by fund managers to a new record of $ 648 billion in April, according to Citigroup. All sectors earned monthly from being a leader in agriculture and precious metals, the bank said.
Agricultural commodities have been particularly strong due to rising demand in China and concerns about the drought in Brazil. The drought in the U.S., which is being planted this year, is adding to rising prices. Corn, which is marketing $ 7.60 in grain and $ 16.22 in soybeans, is at levels not seen since 2013.
“From a macroeconomic environment to high demand and production concerns, there are components to the supercycle,” said Dave Whitcomb, Peak Trading Research, a commodity specialist.
Rising copper and iron prices are a boon for big miners, who want to record profits that will surpass the records set in the China-driven commodity boom of the early 2000s.
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JPMorgan estimates that Rio Tinto and BHP will be the largest corporate dividends in Europe this year, paying shareholders nearly $ 40 billion. Shares in Rio, the world’s largest iron ore producer, hit a record high of 67 euros on Monday.
Crude Brent, an international oil benchmark, has retreated
$ 70 a barrel, which he surpassed for the first time in March
more than a year, recovering lost land as a pandemic
reduced demand for crude and burnt markets.
Restrictions on the supply of major oil producers have helped strengthen the market
as consumption has begun to recover around the world.
While some Wall Street banks have praised the start of a new supercycle, while some traders are talking about a return of $ 100 a barrel of oil, others are less convinced. The International Energy Agency has said oil supplies are still plentiful, which means it is too early to talk about supercycles.
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