Rio Tinto PLC Stock – 3 Stocks Benefiting from Rising Iron Ore Prices By StockNews
© Reuters. 3 Stocks Benefiting from Rising Iron Ore Prices
High demand, primarily from China, has been driving a rise in iron ore prices. As a core element in the production of steel, and with several countries worldwide revamping their infrastructure, the demand for the commodity is expected to grow even more. As such, we believe BHP Group (NYSE:), Rio Tinto (NYSE:), and Labrador (LIFZF) are in an excellent position to benefit. So, let’s pore over these names.The recovery in steel demand with the fast-paced economic recovery has been driving iron ore prices to record highs. Now that China, one of the world’s largest importers of iron ore, is back in the market in the wake of COVID-19 pandemic disruptions and is experiencing a construction boom, the demand for the commodity is expected to continue rising. The iron ore industry’s solid performance over the past year is evident in iShares MSCI Global Select Metals & Mining Producers ETF’s (PICK) 126.1% returns over the past year versus the SPDR S&P 500 Trust ETF’s (SPY) 46.1% gains over this period.
High iron ore prices are encouraging mass production, which is spurring increasing investor interest. Overall, a recovering economy, soaring demand and high business confidence have been driving solid industry growth. The global market for iron ore pellets is expected to grow at a 3.7% CAGR of 3.7% over the next six years.
Because the spike in iron ore prices is expected to continue in the near term, we believe BHP Group (BHP), Rio Tinto Plc (RIO), and Labrador Iron Ore Royalty Corporation (LIFZF) are well positioned to benefit.
Continue reading on StockNews
Fintech Zoom or anyone involved with Fintech Zoom will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.