BEIJING- Iron ore futures prices rose on Friday and were on track for a weekly gain, supported by heightened concerns over cyclone-led supply disruptions in major producer Australia.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 0.67 percent at 824 yuan ($113.14) a metric ton. The contract has gained 0.5 percent so far this week.
The benchmark March iron ore on the Singapore Exchange climbed 1.73 percent to $108.3 a ton, and poised for a weekly gain of 1.8 percent.
Australia’s iron ore export hub, the world’s largest, braced on Friday for a powerful tropical cyclone, forcing the closure of all major commodity ports in the country’s northwest.
China imported a record high of 1.24 billion tons of iron ore last year, with 60 percent coming from Australia, according to customs data.
“If there is a damage to the port infrastructures (by the cyclone), it will be hard to assess the actual impact as the situation will become serious,” said a Chinese trader, who requested anonymity as he is not authorized to speak to media.
However, concerns over a potential global trade war sparked by new tariffs imposed by US President Donald Trump, along with an unexpected decline in demand, capped weekly gains.
Average daily hot metal output reversed an uptrend to dip by 0.2 percent from the prior week to 2.28 million tons, as of February 13, survey from consultancy Mysteel showed.
Other steelmaking ingredients on the DCE slipped, with coking coal and coke down 1.35 percent and 0.7 percent, respectively.
