Prices of Mongolia’s main export products surge www.news.mn
As a developing nation, rich in natural resources, Mongolia’s economy is dependent on its southern neighbour, China, which buys practically all its copper and iron ore and coking coal. With the onset of the coronavirus pandemic, Mongolia had to take the tough decision to close its borders to the outside world – as a result, exports were completely halted. Although people still cannot travel, natural resource exports can and the signs are good.
As China’s economy begins recovering from the coronavirus pandemic, Mongolia’s copper prices have surged to USD 5400 per tonne – an increase of 17 percent over the last two months. In addition, the prices of iron ore rose sharply to USD 91 following the end of the suspension of deliveries.
Mongolia suffered from a fall in copper prices due to pandemic. As of 23 March, copper price had fallen to USD 4609. However, as China’s production and demands resumed, Mongolian copper prices have taken off.
As a rule, whenever there is a global financial crisis, gold prices surge, subsequently, Mongolia’s gold prices increased by 6.9 percent in the first quarter of 2020. Currently, gold prices stand at USD 1700-1750.
Mongolia lies among the top 30 resource-rich developing nations, according to a report by the International Monetary Fund (IMF). Copper, gold, and other resource mining have also had a positive impact on the Mongolian economy as the nation has seen substantial labour shifts where citizens have moved from the agricultural sector to the mining, manufacturing, and construction sectors.
Published Date:2020-06-10