Iron Ore Futures Rise Above $100 Per Ton

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Iron ore futures in Singapore rose above $100 per ton, marking the highest price point since mid-July. This increase was driven by tightening coking coal supplies in China, which raised steelmaking costs, alongside early signs of seasonal demand growth. Analysts at Bradesco BBI, led by Rafael Barcellos, noted that the recovery was further supported by declining iron ore inventories, increased spot activity at Chinese steel-trading houses, and improved steelmaker margins.

Consequences

The recovery of iron ore prices to triple-digit territory depends on whether seasonal improvements can overcome the long-term drag of China's prolonged property downturn. Bradesco BBI analysts expect the current rebound to persist due to firm cost support and improving downstream conditions, leading them to favor companies like Vale and Ternium.

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