SINGAPORE: Iron ore futures rebounded on Monday, snapping a six-session slide to a one-month low, as surging oil and higher feedstock demand supported the market.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) rose 1.26 percent to 763.5 yuan (USD111.75) a metric ton.
The benchmark May iron ore on the Singapore Exchange was 1.08 percent higher at USD104.6 a ton, as of 0710 GMT.
Iron ore inventory at major Chinese ports declined by 0.16 percent week-on-week, as of April 10, data from consultancy SteelHome showed.
Continued portside destocking and rising hot metal output keep prices supported, according to consultancy Mysteel.
Imported iron ore declined by 536,100 tons at 47 Chinese ports on Australian supply disruptions, data from Mysteel showed.
However, imports are expected to improve this week as supply disruptions have eased.
Oil prices jumped above USD100 a barrel on Monday as the US Navy prepared to block ships from reaching Iran via the Strait of Hormuz, a move that could restrict Iranian oil exports, after Washington and Tehran failed to reach a deal to end the war.
Elevated oil prices are expected to lend support to iron ore prices, as they increase shipping costs.
In news, Brazilian miner Vale will begin building this year a processing plant in southeastern Minas Gerais state for tailings and waste rock, the company said on Friday.
The plant, which will have a capacity to produce up to 2 million tons of iron ore annually and is expected to begin operations next year, is part of the company’s goal to reuse previously discarded raw materials.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 0.66 percent and 0.64 percent, respectively.
Most steel benchmarks on the Shanghai Futures Exchange rose. Rebar climbed 0.19 percent, hot-rolled coil firmed 0.21 percent, and stainless steel jumped 0.69 percent. Meanwhile, wire rod dropped 0.12 percent.
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