The Rising Influence of Rising Affluence

[DewDiligence]

Iron-ore futures hit 3-year high:

http://www.reuters.com/article/us-asia-ironore-idUSKBN1500AV

Iron ore futures in China soared as much as 8 percent to a three-year peak on Monday, lifted by strong gains in steel prices that continued to benefit from Beijing's campaign to slash excess capacity.

…The most-active iron ore on the Dalian Commodity Exchange hit the exchange-set ceiling of 657.50 yuan ($95) a tonne, its strongest since January 2014, before closing 7.2 percent higher at 653 yuan.

…Both steel and iron ore posted their best week since November last week after China said it would shut down production of low-grade steel products by end-June…to tackle overcapacity and pollution.

The latest spot price of 62% iron ore for delivery at Qingdao, China was $83.65/tonne.