Since early December, the price of spot iron ore rose around 33 percent and it is said to be trading almost at a 15-month high because of expectation of supply disruption.
Traders expect that iron ore export from Australia, leading ore exporter, may be affected by the upcoming cyclone season.
Soon a cyclone may develop off Australia’s northwestern coast before approaching the Pilbara iron ore mining region, weather forecasters said.
Some traders expect the price to remain elevated in the coming days because of expectation that demand for steel in China may increase on the back of signs of revival in the economy.
Owing to rising demand in China, iron ore prices rebounded 77 per cent since hitting three-year lows below $87 in September.
Some traders said the price is rising also because of speculative buying. Top buyer China is said to be rebuilding stockpiles on hopes a mending economy will buoy steel demand.
Slower domestic production of iron ore in China, especially in the northern regions owing to winter, and limited flows of spot cargoes from Australia, Brazil and India have also helped push up prices, reports suggest.
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