Any investor who ignored the bearish calls on the iron ore sector would have doubled their money this year just by betting on the shares of the world’s fourth-biggest exporter, Fortescue Metal Group.
The gains have been driven by an unexpected price rebound amid rising steel exports and government stimulus in China. The Bloomberg Intelligence Index of 27 producers has surged 56% this year, beating a 3% gain in the MSCI World Index, while ore futures in Singapore have posted a 42% jump.
