Iron ore prices – which touched a five-year high mid-2019 on supply issues before slipping back – have remained comparatively strong so far during the coronavirus markets crisis, leading some players and analysts to describe the steelmaking ingredient as a safe haven compared to other metals commodities.The hypothesis is strengthened on perceptions that iron ore demand should now start rising again as China rebuilds production at some steelworks and manufacturing facilities as the rate of transmission of coronavirus within the country slows. However, the time scale of any real steel market recovery is unclear as steel inventories in China were described Monday as being at an all-time high, around three times traditional levels; according to China's Mysteel, stocks of rebar for construction, hot-rolled coil for autos and domestic appliances and three other key steel products rose to a new high of 25.27 million mt last week.For William Chin, head of commodities at Singapore Exchange (SGX), a major iron ore derivatives exchange, iron ore remained a standout performer against a broader commodities and equities rout Monday as oil prices plunged. Even though S&P Global Platts assessed 62% Fe iron ore delivered China down $2.30/mt to $87.20/mt Monday, its price is still nearly 7% higher than one month ago and 5% above the levels of one year ago, shortly after miner Vale's fatal tailing dam accident in Brazil curtailed supplies.
Source : https://www.spglobal.com/platts/en