SINGAPORE: Iron ore futures rose on Thursday, supported by concerns over Australian supply disruptions due to the closure of ports in the Pilbara region following a cyclone.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.31percent higher at 818 yuan (USD118.45) a metric ton, as of 0226 GMT.
The benchmark April iron ore on the Singapore Exchange was up 2.15percent at USD107.45 a ton. Portsat Ashburton, Cape Preston West, Dampier and Varanus Island have shut down due to Tropical Cyclone Narelle, Pilbara Ports said on Thursday, leading to concerns over iron ore supply from top exporter Australia.
However, gains were capped due to production restrictions in the Chinese iron ore hub of Tangshan, which could result in lower demand.
The city activated a level-2 emergency response for heavy air pollution on March 25, local authorities said. Steel mills in Tangshan are also facing restrictions on scrap metal trucks entering their facilities, consultancy Mysteel said in a note.
Meanwhile, high energy prices have led to worries about global inflation, while expectations of US interest rates cuts have weakened. The broader caution has increased the risk of a price correction across bulk commodities, a note from Shanghai Metals Market said.—Reuters