Iron ore out of deep freeze after China’s break

Higher output: Cranes unloading iron ore from a ship at a port in Rizhao, Shandong province. China’s steel output climbed 1.7 in August from a month earlier. – Reuters

SINGAPORE: The global iron ore market came out of the deep freeze yesterday after a week-long break in China, with prices advancing on speculation that steelmakers struggling with overcapacity and sinking prices will continue to operate, sustaining demand.

Futures rose 1.9% to close at 373.5 yuan (US$59) a tonne on the Dalian Commodity Exchange. Spot ore with 62% content delivered to Qingdao climbed 5.3% to US$55.97 a tonne yesterday, the first increase in four days, according to Metal Bulletin Ltd, as markets and many businesses in China were closed on Oct 1-7.