Iron ore prices have been on a temporary rise but there are no underlying reasons or market fundamentals to believe this will be sustained.
The spike in iron ore prices has also, unfortunately, coincided with a slight rise for the Australian Dollar. However, the bigger issue for the market is that the global oversupply of iron ore continues.
How does the improved iron ore price affect the metal recycling industry? Well, the answer is, it doesn’t. Firstly, it is only going to be a temporary rise and secondly, there is already a large and ongoing oversupply of iron ore globally.
So, yes, we have seen a bit of a rise in iron ore prices. But forget the hype and those speculating on a continued rise.
I very much doubt it will be sustained and, more importantly, there are no underlying reasons or fundamentals present in the global market for it to be sustained.