Iron Ore Powers Higher as China Clean-Air Push Boosts Demand

Dalian futures jump most in a month as Singapore prices climb
Some suppliers benefiting from improved bargaining position

A worker holds a handful of iron ore pellets at the Yeristovo and Poltava iron ore mine, operated by Ferrexpo Poltava Mining PJSC, in Poltava, Ukraine, on Friday, May 5, 2017. China accounted for over 60% of global iron-ore demand in 2016, World Steel Association data show and was Ferrexpo's largest export-sales contributor by country.Photographer: Vincent Mundy/Bloomberg

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By Jasmine Ng

December 18, 2017 at 9:18 AM UTC

Updated on

December 18, 2017 at 4:24 PM UTC

This article is for subscribers only.

Iron ore’s on the rise as an environmental cleanup in China tightens the supply of higher-grade material that’s less polluting and allows steelmakers to maximize production.

Futures on the Dalian Commodity Exchange surged 5.5 percent, the most in a month, while the most active SGX AsiaClear contract climbed 4.5 percent to a three-month high of $72.35 a metric ton in Singapore. The benchmark price for spot ore with 62 percent content delivered to Qingdao increased 3.7 percent to $74.15 a dry ton, the highest since September, according to Metal Bulletin Ltd.