Iron ore futures jumped to their highest level in three weeks after data showed a decline in shipments from the world’s largest producers of the raw material used in steelmaking.
Iron ore was trading at around $106 per ton in Singapore on Tuesday. Shipments from Australia and Brazil fell by 2.7 million tons last week compared to the previous seven days, according to the latest figures from consultancy Mysteel.
On a macro level, the Chinese economy received a boost from the People’s Bank of China’s plans to auction 1 trillion yuan ($141 billion) of a one-year medium-term lending instrument today. According to the Shanghai Securities News, the sale highlights the Chinese central bank’s use of a mix of monetary policy tools to ensure ample liquidity within the economy.
Iron ore futures in Singapore rose 0.9% to $105.95 a ton. Prices also climbed 1% on the Dalian exchange, and steel futures in Shanghai also advanced.
