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Iron ore prices hit eight-month high on Chinese reflation efforts

According to the Financial Times, the Australian mining group Fortescue has moved into expansion mode on the back of robust iron-ore prices that are now at an eight-month high. The reason for the rebound is the reflation efforts of the Chinese government after China experienced a relatively hard landing in property and shares, prompting China to give up on its plan to rebalance the economy.

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For now, China is back to high growth rates. If the situation in Europe and the US does not improve however, things could be different. Government stimulus can only go so far.

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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.