The price of Ukraine's key export resource has begun to rise after a long decline

The price of iron ore has surpassed $100 per tonne for the first time since May amid improving investor sentiment on China's economic growth and new reports from mining company Rio Tinto. About writes Bloomberg.

Ore futures rose by more than 1% to $100.10 per tonne in Singapore.

Iron ore has recovered in recent weeks as Chinese authorities have promised to fight excessive competition in the industry, modernize outdated facilities, and introduce new measures to support the construction sector.

In addition, Rio Tinto announced that it will start shipping iron ore from the Simandou deposit in Guinea in November this year, earlier than planned.

In total, 500,000 to 1 million tons will be exported from the third and fourth sections. The full capacity of the entire deposit is estimated at 120 million tons per year.

According to analysts at Royal Bank of Canada, production at Simandu will reach 12 million tons in 2026, and the full 48 million tons will be reached no earlier than 2028.

Despite the positive dynamics, Citi analysts believe that the current price increase is not in line with market fundamentals and is likely to be temporary.

In particular, China's steel production is expected to gradually decline, rather than sharply fall by 50 million tons.

For Ukraine, one of Europe's largest iron ore exporters, the situation on the global market is of critical importance.

Higher prices could potentially generate more foreign exchange earnings for the budget and strengthen the financial stability of the mining and metals sector, especially in wartime.

• Iron ore prices in 2024 decreased by 29% due to the weakening economy of China, the main consumer of this resource.