Iron Ore Powers Past $100 as Supply Woes Meet Robust Demand
- Spot prices jump to $101.05, futures surge 21% on SGX in May
- Brazil concerns, lower port holdings, China buying drive gains
Vale SA's Brucutu mine in Barao de Cocais, Brazil.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
Iron ore surged past $100 a ton as supply woes in Brazil coincide with sustained, robust demand in top steel producer China.
Benchmark spot prices climbed to $101.05 on Friday as Brazil, the world’s second-largest exporter, saw a surge in coronavirus infections, stoking worries that the pandemic may curb local supply. In April, miner Vale SA cut its annual shipment guidance on bad weather and the virus’s impact on operations. Meanwhile, port stockpiles of iron ore in China have continued to decline.