Hot commodities: Iron ore surges 10%, copper extends record run

A commodities boom is stoking inflation around the globe and many are betting iron ore and copper could be among the biggest winners.

Iron ore futures surged more than 10% and copper extended its record run amid increasing bets they’ll be among the biggest winners from a commodities boom that’s stoking concerns about inflation around the world. While analysts struggled to pinpoint a trigger for Monday’s gains in iron ore, they cited several trends including optimism that central banks will retain supportive policies even as the global economy recovers. Expectations China will tighten environmental rules have added to the bull case for copper – seen as vital to the green energy transition – and fueled speculation that steelmakers may front-load iron ore purchases before new curbs kick in. The gains add to a more than yearlong surge in raw-materials prices that’s shifted into overdrive in recent weeks, with the Bloomberg Commodity Spot Index rising for 14 of the past 15 days to the highest level in almost a decade.