The main themes driving the rally are the reduction of supply, such as a dam near the vale iron ore mine in Brazil, the reduction of crude oil exports by the organization of Petroleum Exporting Countries (OPEC), and the reduction of palm oil output in Southeast Asia.
A number of analysts said that the slowdown in global economic growth and the expectation of a long-term trade war between the United States and China may be the main factors driving the price trend next year.
"The economy is not so good and has been slowing down, especially in China and India," said Tony Nunan, senior advisor to the risk management team at Mitsubishi in Tokyo.
"Even if there is talk that the first phase of the trade agreement has been reached, it is far from what the United States initially wanted. They hope that intellectual property issues can be solved. Many feel that the regular trade war will continue for a longer time than we expected. That means the economy may be on a reprieve next year
White House Trade advisers said Monday that the first phase of the US China trade agreement could be signed next week, but said it would be confirmed by President trump or a US trade representative.
**Iron ore shows supergroup**
The most active iron ore futures contract traded on the Dalian Mercantile Exchange rose more than 140% this year, hitting a record high in July and then retreating due to increased supply.
It is generally expected that iron ore prices will decline in 2020, Vale's iron ore production may rebound, while China's demand growth is uncertain. Some analysts believe that China's steel production growth will slow down next year.
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