3 Stocks Benefiting From Rising Iron Ore Prices By StockNews

© Reuters.

© Reuters. 3 Shares that benefit from rising iron ore prices

High demand, mainly from China, has driven higher iron ore prices. As a central element in the production of steel, and with several countries around the world renovating their infrastructure, the demand for this product is expected to grow even more. As such, we believe that BHP Group (NYSE :), Rio Tinto (NYSE 🙂 and Labrador (LIFZF) are in an excellent position to benefit. So let’s take a closer look at these names: the recovery in demand for steel with the accelerating economic recovery has pushed iron ore prices to record highs. Now that China, one of the world’s largest iron ore importers, is back on the market in the wake of disruptions from the COVID-19 pandemic and experiencing a construction boom, demand for the product is expected to continue to increase. The strong performance of the iron ore industry over the past year is evident in the 126.1% returns of the iShares MSCI Global Select Metals & Mining Producers ETF (PICK) over the past year compared to the 46.1% earnings of the SPDR S&P 500 Trust ETF (SPY) during this period. High iron ore prices are encouraging mass production, which is generating growing interest from investors. Overall, a recovering economy, growing demand, and high business confidence have driven strong industry growth. The global iron ore pellet market is expected to grow at a CAGR of 3.7% from 3.7% over the next six years. With rising iron ore prices expected to continue in the near term, we believe that BHP Group (BHP), Rio Tinto Plc (RIO) and Labrador Iron Ore Royalty Corporation (LIFZF) are well positioned to benefit. Continue reading on StockNews

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