Iron ore price rose on Wednesday on hopes that the Russia-Ukraine conflict will boost demand for Chinese steel overseas.
The most active May iron ore contract on China’s Dalian Commodity Exchange surged as much as 5.9% to 764 yuan a tonne, the highest since Feb. 15.
Steel futures also climbed to the highest in more than two weeks.
Russia accounts for an estimated 10% of the global steel trade, while Ukraine has a 4% share, according to Huatai Futures analysts.
The supply interruption will force some major buyers to seek alternative sources, and “currently only China can fill this huge market vacancy”, they said in a note.
The most-active May contract for hot-rolled coil – steel used in car bodies and home appliances – on the Shanghai Futures Exchange rose 2.5% to 5,158 yuan ($817.08) a tonne, advancing for a third consecutive day to the highest since Feb. 11.
