Analysts said latest data showing lower iron ore shipment volumes particularly from Brazil and plunging cargo arrivals in China were also driving prices of the steelmaking ingredient higher.
Iron ore’s most-active May contract on China’s Dalian Commodity Exchange ended morning trade 1.7% higher at 848 yuan ($125.11) a tonne. On the Singapore Exchange, benchmark February iron ore rose as much as 0.7% to $120.85 a tonne.
“(Brazilian miner) Vale’s shipments have dropped significantly due to the impact of the rainy season,” Sinosteel Futures analysts said in a note.
Vale SA, one of the world’s largest iron ore producers, said last month it expected 2023 output to reach between 310 million and 320 million tonnes, flat compared with last year’s output forecast.
