Iron ore futures edged higher on Wednesday, with the Singapore benchmark contract vaulting past $120 a ton to hit a fresh six-month peak, as concerns over supply added support to prices already boosted by brightening demand prospects in China.
Analysts said latest data showing lower iron ore shipment volumes particularly from Brazil and plunging cargo arrivals in China were also driving prices of the steelmaking ingredient higher.
Iron ore’s most-active May contract on China’s Dalian Commodity Exchange ended morning trade 1.7 percent higher at 848 yuan ($125.11) a ton.
On the Singapore Exchange, benchmark February iron ore rose as much as 0.7 percent to $120.85 a ton.
“(Brazilian miner) Vale’s shipments have dropped significantly due to the impact of the rainy season,” Sinosteel Futures analysts said in a note.
Vale SA, one of the world’s largest iron ore producers, said last month it expected 2023 output to reach between 310 million and 320 million tons, flat compared with last year’s output forecast. — Reuters
