Iron ore prices up on China demand

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    Iron ore prices ticked higher in early trade on Monday, supported by demand for the steelmaking ingredient, though subdued trading and thin volumes are expected this week ahead of China’s Oct. 1-8 National Day holiday.

    Iron ore for January 2021 delivery on China’s Dalian Commodity Exchange rose 0.7 percent to 768 yuan ($112.61) a ton.

    On the Singapore Exchange, the October contract gained 0.4 percent to $113.64 a ton.

    Both Dalian and Singapore benchmarks are set for quarterly gains despite easing recently after hitting their highest levels since 2014 early this month, with support intact after Australia painted a less somber price outlook.

    In a quarterly report, the Department of Industry of top iron ore supplier Australia projected the price to be around $100 a ton over the final quarter of 2020, before easing to around $80 by end-2021 and $75 by end-2022.