Iron ore futures in China and Singapore rose on Tuesday after miner Fortescue Metals Group raised concerns over a labor shortage in Australia because of COVID-19 curbs, which could hamper output and shipments of the steelmaking ingredient.
Bigger rivals BHP Group and Rio Tinto have also warned of disruptions from labor shortages as Australia faces a surge of Omicron coronavirus variant cases.
Iron ore’s most-traded May contract on China’s Dalian Commodity Exchange ended the morning session 0.5 percent higher at 759.50 yuan ($119.99) a ton, rising for a fifth straight day after overnight gains erased Monday’s daytime losses.
On the Singapore Exchange, the most-active March contract was up 2.4 percent at $136.05 a ton.
Fortescue, the world’s fourth-biggest iron ore miner, posted a 2 percent rise in second-quarter shipments, but flagged pressures from strong demand for labor and resources, as well as supply chain constraints due to the pandemic.
“The release of Fortescue’s production report should shed light on whether recent iron ore supply disruptions have been overcome,” ANZ commodity strategists said in a note.
