Iron ore price up on supply woes, easing China covid curbs
Iron ore price rose on Tuesday supported by supply concerns and shrinking portside inventories, while the easing of some covid-19 curbs in China also lifted trader sentiment.
Benchmark 62% Fe fines imported into Northern China rose 1.24%, to $128.40 per tonne.
“Falling Australian and Brazilian iron ore shipments and arrivals into China week-on-week should provide modest support for fragile sentiment,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.
Iron ore and other steelmaking inputs were also supported following reports that Shanghai will gradually reopen for business following weeks of lockdowns, Widnell said.
Shanghai set out plans on Monday for the return of more normal life from June 1 and the end of a lockdown that has lasted more than six weeks and contributed to a sharp slowdown in China’s economic activity.
In Beijing, authorities have extended guidance to work from home in four districts, but have not enforced a city-wide lockdown.
“Robust blast furnace capacity utilization rates and daily (iron ore) offtakes, and depleting portside inventories should all provide support,” Widnell said.
Iron ore port inventories in China stood at 141.75 million tonnes as of May 13, the lowest since October, according to data from SteelHome consultancy.
(With files from Reuters)