China iron ore extends rally in thin pre-holiday trade
MANILA, Jan 20 (Reuters) - Iron ore futures in China closed higher on Monday as supply concerns and improved outlook for steel demand boosted prices, though trading was light ahead of the week-long Lunar New Year break.
The Dalian Commodity Exchange’s most-traded iron ore contract, expiring in May, ended 0.5% higher at 670 yuan ($97.82) a tonne.
Supply issues have also pushed spot prices higher, with the benchmark 62% iron-content ore settling at $96.70 a tonne on Friday, the strongest since Sept. 17 last year, data from SteelHome consultancy showed. SH-CCN-IRNOR62
Imported iron ore stocked at China’s ports fell for three weeks in a row, hitting 127.35 million tonnes on Friday, the lowest since the last week of September 2019, SteelHome data also showed. SH-TOT-IRONINV
Adding to supply concerns, Brazil’s Vale SA — the world’s largest iron ore miner — has halted tailings operations at its Esperança mine, citing the need for safety checks.
Anglo-American miner Rio Tinto reported reduced iron ore shipments in the last quarter of 2019, highlighting its struggles to overcome fires, poor weather and operational challenges, analysts at ANZ Research said in a note.
