SINGAPORE: Iron ore futures clawed back higher on Thursday, supported by a softer dollar and Australia supply snags, while investors looked for fresh developments surrounding the trade war between the United States and top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 1.43% higher at 817.5 yuan ($112.22) a metric ton, after closing lower in the previous session.
The benchmark March iron ore on the Singapore Exchange was 2.08% higher at $105.95 a ton at 0706 GMT.
Australia is in its hurricane season, and there is a risk of disruption in shipments, Chinese consultancy Hexun Futures said in a note.
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Leading iron ore supplier Rio Tinto said on Tuesday it had begun clearing iron ore ships from two Western Australian ports as two tropical cyclones complicated its efforts to repair infrastructure damaged by a cyclone last month.
Rio’s port struggles could add a risk premium to iron ore prices, said an analyst.
The Western Australia cyclone season typically occurs between November and April.
Iron ore falters on Sino-US tariff war concerns, sluggish China growth
Also providing some support to prices was a weaker U.S dollar, which hovered near the lowest level since the start of last week against a basket of peers.
A weaker dollar makes greenback-denominated commodities more affordable for overseas buyers.
China filed a World Trade Organization complaint on Wednesday against U.S. President Donald Trump’s new 10% tariff on Chinese imports and his cancellation of the “de minimis” exemption.
The Chinese foreign ministry urged for dialogue between the two countries on Wednesday.
Other steelmaking ingredients on the DCE advanced, with coking coal and coke up 1.3% and 0.78%, respectively.
Steel benchmarks on the Shanghai Futures Exchange gained ground. Both stainless steel and hot-rolled coil were up nearly 0.7%, wire rod rose 0.79%, and rebar added 0.6%.
Source: Brecorder
