Iron ore prices rose during Wednesday’s trading, amid disruption of shipping traffic in Australian ports due to bad weather conditions, and expectations of a recovery in demand in the short term, especially in China.
Iron ore futures for March delivery on the Singapore Exchange rose by 1.80% to $107.80 per tonne at 12:50 pm Mecca time.
This is after falling by about 1.2% in yesterday’s trading due to US President Donald Trump imposing a 25% tariff on steel and aluminum imports from all countries, with the decision to take effect on March 12.
This rebound came as fears of disruption to Australian supplies returned to the fore after the western port of Hedland – the world’s largest iron ore export center – announced its intention to close by 01:00 pm Mecca time due to Tropical Cyclone “Zelia”, according to Reuters.
The agency quoted analysts as saying that demand for iron ore is expected to increase with improved weather conditions in other parts of the world and a recovery in construction activities.
