Iron ore scales over 3-week high on China demand, supply risks | Reuters - Some very impressive demand dynamics developing for #IronOre & #Vanadium which bode well for @jangadamines #JAN as Pitombeiras reaches a number of key stages #MiningInBrazil
(Reuters) - Iron ore futures jumped on Friday to their highest in more than three weeks, as a rebound in steel inventory in top producer China suggested that demand for the raw material remained brisk.
The most-traded September iron ore on China’s Dalian Commodity Exchange rose as much as 4.1% to 1,226 yuan ($191.96) a tonne, its loftiest since May 19, and was set for a second consecutive weekly rise.
Stocks at 184 Chinese steel mills covered by Mysteel consultancy’s weekly survey stood at 6.04 million tonnes as of Wednesday, up 2.7% from last week partly due to increased output, it said.
Concerns over tight global iron ore supply also supported prices, with seaborne cargoes and portside materials in China trading at the highest since May 19 above $200 a tonne.
The rally in China’s ferrous materials complex resumed despite the government reiterating its resolve to rein in commodity inflation and vowing to step up price monitoring and market supervision.