Dalia n iron ore breached the 1,000-yuan mark on Wednesday on optimism over demand for the steelmaking raw material and as traders fretted about supply in top steel producer China due to some disruptions in Australia.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange climbed 2.5 percent to 1,003 yuan ($153.32) a ton.
Iron ore on the Singapore Exchange rose 0.3 percent to $153.74 a ton.
“From the fundamentals perspective, steel margins are still good, at least for industrial materials including hot-rolled coil,” said Richard Lu, senior analyst at CRU Group in Beijing.
“That’s why the Chinese hot metal production is elevated, despite a marginal fall in recent weeks due to mill maintenance and stricter operating restrictions in some regions,” he said.
Iron ore arrivals to China are expected to slow down, Lu added, citing some disruptions in Australia.
Mysteel consultancy’s latest survey showed iron ore dispatched from Australia and Brazil fell for the second week over Dec. 7-13 by another 1 million tons from the prior week.