Iron ore futures bounce in China with supply concerns By Reuters

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© Reuters. (Blank Headline Received)

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By Enrico Dela Cruz

MANILA (Reuters) – Iron ore futures jumped on Wednesday, with the benchmark contract in China firing 5% after an outbreak of coronavirus on a bulk carrier in Australia’s major port of Hedland raised concerns about problems in the offer.

Iron ore on the Chinese stock exchange in Dalian closed at its highest level since September 21, at 809 yuan ($ 118.88) per ton.

It advanced 16.6% this quarter, in the fourth consecutive quarter of earnings.

In the Singapore stock exchange, the material used in steelmaking advanced 3% in the afternoon.

New supply concerns began to raise prices after mining company Vale (SA 🙂 suspended operations at the Viga concentration plant in Brazil, according to ANZ analysts, which will reduce its production by 11,000 tonnes per day.

Then there was news that a bulk carrier was trapped in the Australian port of Hedland, one of the largest in the world for iron ore, after 17 of the 21 crew members tested positive for the coronavirus, which according to ANZ has delayed shipments there.

Australian soldiers were deployed to help contain the outbreak on the ship, which last changed its crew in Manila.

But the market had few volumes due to the imminent National Day holiday in China, from 1 to 8 October.

Steel rebar for construction on the Shanghai Stock Exchange rose 1.1%.

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