News of metallurgy

Iron ore price rises due to supply issues

China's iron ore stocks remain at their lowest level since October

Iron ore prices rose on Tuesday amid supply concerns and destocking in ports, while the easing of some COVID-19 restrictions in China also helped trader sentiment.

Standard 62% Fe fines imported into Northern China rose 1.24% to $128.40/t.

"Falling Australian and Brazilian iron ore supplies and weekly arrivals in China should provide modest support to fragile sentiment," said Atilla Widnell, managing director of Navigate Commodities in Singapore.

Iron ore and other steel-making resources have also received support following reports that Shanghai will be gradually reopening for business after weeks of lockdown, Widnell said.

On Monday, Shanghai laid out plans to return to a more normal life from June 1 and end the lockdown, which has lasted more than six weeks and contributed to a sharp slowdown in economic activity in China.

Beijing expanded work-from-home guidance in four districts, but did not implement a citywide lockdown.

"Reliable blast furnace capacity utilization rates and daily shipments (of iron ore) as well as port depletion should provide support," Widnell said.

According to consulting firm SteelHome, China's iron ore stockpiles stood at 141.75 million tonnes as of May 13, the lowest level since October.