Iron-ore swaps rose to a 14-month high on speculation China, the largest importer of the steelmaking raw material, needs to restock at a time of year when the biggest suppliers often face weather disruptions.
January contracts gained 0.8 percent to $151.25 a dry metric ton, according to GFI Group Inc. That’s the highest for the coming month since October 2011, according to GFI and SSY Futures Ltd., two of the largest brokers of the contracts.
Traders are reacting to concerns that storms in Australia and Brazil may disrupt supply, as in previous years, said Kerry Deal, head of iron-ore and bulk derivatives at Jefferies Hong Kong Ltd. While China typically restocks in January, he said, port inventories plunged 24 percent since the end of August to 72.97 million tons, within 3.4 percent of a more than two-year low, according to researcher Beijing Antaike Information Development Co.
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