Steel Products Prices North America
September 28, 2017
Raw Material Prices in Flux
Written by Peter Wright
The price of iron ore is falling but zinc is at a 10-year high. In this report, we examine the latest prices for iron ore, scrap, coking coal and zinc and their relationship to the dollar.
“Right now, the dollar has a lot going against it. The administration in the U.S. continues to hope the dollar falls, and they are getting their wish,” writes commodities analyst Andrew Hecht. “The big winner could be commodities prices if the dollar has entered a multi-year bear market. All signs are pointing lower for the dollar, and this could be the perfect time to begin buying hard assets that come out of the crust of the earth. Perhaps the most compelling argument for higher commodities prices is that they are a reflection of inflationary pressures in the global economy. After almost a decade of monetary policy that has flooded the world markets with unprecedented levels of capital to encourage borrowing and spending and inhibit savings, an inflationary surge could be the ultimate price tag for accommodative central bank policy.”
