Iron ore price rebounds as China steel output hits all-time high
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Iron ore prices climbed back on Monday as China’s steel output hit a record high despite the government’s pledge to curb annual production to reduce pollution and increase costs from raw materials.
Crude steel output in April rose to 97.9 million tonnes to hit monthly and daily run-rate records.
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The robust pace of production also lifted the year-to-date tally to 375 million tonnes, a 16% jump compared to same period last year. This comes as iron ore stockpiles at Chinese ports declined for the third week, indicating strength in demand.
Thompson in March announced plans to step down at next year’s annual meetings, completing a clear-out of top management in the wake of last year’s Juukan Gorge heritage fiasco. Rio is under increased pressure from investors on environmental and social policies, but trade and political tensions between China and Australia may present a major headache for the incoming chair.
“The challenge for the new chairman is the relationship with China it’s very delicate,” said Philip Kirchlechner, director of consultancy Iron Ore Research Pty and a former head of Rio’s Hamersley iron ore division in Shanghai. The miner “will have to be sensitive not only to local communities, but also to different markets and the complexity of China,” he said.
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