The World bank now sees iron ore at $US50 a tonne in 2016, $US51.50/t in 2017 and extending gains to $US56.20/t by 2020
The global present commodity meltdown basically confirms the magnitude of China's slowdown and which impacts the commodity currencies. Commodity investing since ages has always been few large spikes and then a long eerie decline.
The recent up moves in commodities such as aluminum, copper, and nickel, in Sept/Oct 2017
are sustainable and the commodities sector in general is looking bright for the near term and
which will no doubt benefit the dry bulk shipping.
At the peak of bull phase in the commodities, iron ore prices had touched $150 a tonne in early 2013, which since then went on a downward spiral. However, after touching around $35 a tonne it seemed to bottom out.
“As exchange-values, all commodities are merely definite quantities of congealed labour-time.” Karl Marx, Capital,
Aluminium premiums in the key consuming regions started to improve in the month of October 2016 and this quickly translated into the bulk shipments of LME aluminium stocks lying in their approved warehouses, thus benefitting the world's dry bulk carrier fleet which can transport the aluminium products (T-bars, Sows, Ingot bundles) at the lowest freight.
Aluminium Prices Break US$1700 Barrier, and set a fifteen month high.
Singapore as a major trading hub reaped gains as international commodity traders stepped in to move many thousands of tons of Aluminium from its warehouses to the demand centres in USA and other countries.
Steel scrap prices remain near at USD 295/- tonne at the mid of July 2017 and outlook is firm.
There is a further scope of rise in steel prices.
China's steel demand to rise on strong construction forecast. Generally about 40% of the national steel demand is driven by public construction projects.