BEIJING- Iron ore futures prices rebounded on Friday, helped by concerns over a possible supply disruption due to a train incident caused by heavy rains in Brazil, although persistent worry on demand in top consumer China capped gains.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 1.4 percent higher at 907.5 yuan ($126.13) a metric ton, following a drop of 7 percent in the past four trading sessions.
The benchmark March iron ore on the Singapore Exchange was 0.98 percent higher at $120.85 a ton.
“It’s more of impact on sentiment; the situation this year is not worse than the previous year, so we believe the support to ore prices should also be smaller,” Pei Hao, a Shanghai-based analyst at international brokerage FIS, said.
Heavy rains over the last few days in the state of Rio de Janeiro, Brazil, caused an incident on a railroad line owned by a third-party company that serves Vale, the world’s second-largest iron ore supplier, the company said in a reply to a Reuters request for comment. – Reuters
