Iron Ore Swaps Trade at Six-Month High as Fewer Cargoes Seen
Swaps for iron ore jumped to a six- month high on speculation fewer cargoes are being offered as stockpiles declined at ports in China, the largest importer, according to SSY Futures Ltd.
January contracts rose 1.9 percent to $131.50 a dry metric ton, according to Mark Richardson, head of the derivatives unit of London-based shipbroker Simpson, Spence & Young Ltd. That’s the highest since June for contracts to deliver the steelmaking commodity one month ahead, he said.
Inventories at Chinese ports dropped 17 percent since the end of October to 73.74 million tons, the least in more than two years, according to Beijing Antaike Information Development Co., a state-backed research company. Traders are competing for cargoes as fewer tenders are being offered, driving up prices, Richardson said in an e-mail today.
To contact the reporter on this story: Isaac Arnsdorf in London at firstname.lastname@example.org
To contact the editor responsible for this story: Alaric Nightingale at email@example.com