Chinese iron ore futures rose on Monday, extending last week’s gains, fuelled by concerns over supply of the steelmaking raw material and an improved outlook for steel demand, but lighter trade is expected as the Lunar New Year break approaches.
The Dalian Commodity Exchange’s most-traded iron ore contract, expiring in May, rose 1.3 percent to 675 yuan ($98.41) a ton, its highest since Jan. 9.
Supply issues have also pushed spot iron prices higher, with the benchmark 62 percent iron-content ore at $96.70 a ton as of Jan. 17, the strongest since Sept. 17 last year, data from SteelHome consultancy showed.
Imported iron ore stocked at China’s ports fell for three weeks in a row, hitting 127.35 million tons on Friday, the lowest since the last week of September 2019, SteelHome data also showed.
Adding to supply concerns, Brazil’s Vale SA has halted tailings operations at its Esperaní§a mine, citing the need to do a technical evaluation and potentially carry out work to improve safety at the site. — Reuters
