BEIJING- China’s iron ore futures extended gains to the third session due to continued supply worries, after top global iron ore miner Vale SA halted a tailing dam earlier this month, and lowered full year iron ore and pellet sales guidance.
The Brazilian mining giant said on Monday it had temporarily closed its Itabiruçu tailings dam to assess the structure’s “geotechnical characteristics”, lowering its full year sales guidance between the lower end and midpoint of previous range of 307 and 332 million tons.
Shipments from Brazil and Australia stood at 19.66 million tons on the week ended Oct. 20, down by 1.2 million tons compared with the week earlier, according to data from Mysteel consultancy.
The most-traded iron ore contract on the Dalian Commodity Exchange, for January 2020 delivery, rose as much as 1.15 percent to 618 yuan ($87.34) per ton in morning trade. It climbed 0.33 percent to 613 yuan as of 0229 GMT.
Benchmark spot 62 percent iron ore for delivery to China remained unchanged at $86.5 a ton from previous two sessions. – Reuters