Iron ore swaps rebounded on speculation a tropical cyclone will disrupt shipments from Australia, the largest supplier.
March contracts rose 3.7 percent to $152.50 a dry metric ton as of 11:59 a.m. in London, according to GFI Group Inc. That’s the first gain in seven sessions and the biggest since Jan. 18, according to data from SGX AsiaClear, the largest clearer of the swaps used to hedge prices.
Tropical cyclone Rusty is expected to strike northwestern Australia this week, threatening to flood mines and cut exports. The Category 2 storm is 305 kilometers (190 miles) north of Port Hedland, the world’s largest bulk export facility, the Bureau of Meteorology said on its website at 11:45 a.m. western standard time.
Concern about the storm is causing the swaps to rise, Ben Goggin, a broker of the contracts at ICAP Plc in London, said by e-mail today.