Prices for iron ore cargoes with a 63.5% iron content for delivery into Tianjin jumped to above $175 per tonne in the last week of February, a level not seen since October of 2011, amid continued robust demand from China and persistent doubts about Brazilian shipments. Vale, the world’s top producer, has been struggling to return to full production as it faces legal and pandemic obstacles. Adding to a bullish sentiment bias were prospects for a robust economic recovery as vaccination drives gather pace, which, in turn, should further fuel demand for the steel-making ingredient.
