Futures for iron ore rose as doubts remain about the prospects for recovery of supply from Brazil.
Iron ore on the Dalian commodity exchange rose for the third consecutive session, closing 2.7% higher at 767 yuan ($109,23) per ton. Iron ore on the Singapore exchange rose 2.1% in the second half of the day.
According to some analysts, iron ore supported on the side of supply and demand, and spot prices exceed $100 per ton. “Shipments of iron ore remain limited, as the second largest producer, Brazil, is unable to cope with the office, said senior economist, Westpac Economic Research in Sydney Justin Smirk. – Brazil has become the global epicentre of the outbreak COVID-19, and it’s starting to have an impact on miners of iron ore”.
According to a recent survey by consulting firm Mysteel, iron ore shipments to various destinations from Australia and Brazil for the period from 29 June to 5 July decreased by 7.6% compared with a week earlier to 26.3 million tons, after a steady growth for three weeks.
“Given the optimism associated with the infrastructure program of China and the sustainable housing sector, demand in China will likely absorb a large part of the deficit of demand for iron ore from the rest of the world,” – said in Analytics.
Fittings for steel construction on the Shanghai futures exchange rose 0.5%, hot rolled coil increased 0.8 percent and stainless steel rose 0.7 percent.