SINGAPORE- Iron ore futures rebounded on Thursday, supported by a softer dollar and Australia supply worries, while investors looked for fresh developments surrounding the trade war between the United States and top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) rose 1.12 percent to 815 yuan ($111.92) a metric ton after closing lower on Wednesday.
The benchmark March iron ore on the Singapore Exchange was 1.74 percent higher at $105.6 a ton.
Australia is in its hurricane season, and there is a risk of disruption in shipments, Chinese consultancy Hexun Futures said in a note.
Rio Tinto said on Tuesday it had begun clearing iron ore ships from two Western Australian ports as two tropical cyclones complicated its efforts to repair infrastructure damaged by a previous cyclone last month.
Rio’s port struggles could add a risk premium to iron ore prices, said an analyst.
The Western Australia cyclone season typically occurs between November and April.
Also providing some support to prices was a weaker US dollar which slumped to an eight-week trough to the yen and lingered near a one-month low versus the sterling.
A weaker dollar makes greenback-denominated commodities more affordable for overseas buyers.
