10.09.202506:29:51UTC+00Iron Ore Extends Gains on Supply Concerns

Iron ore futures experienced an upswing, exceeding CNY 807 per tonne on Wednesday, reaching their highest point in seven weeks. This surge is attributed to escalating supply concerns surrounding Guinea's expansive Simandou project. It has been suggested that Rio Tinto, the Australian mining company, may need to construct a refinery in Guinea, potentially limiting the amount of ore available for export. Additionally, supply worries were further heightened by a fire at a crucial Brazilian export hub. However, miner Vale has confirmed that the incident did not disrupt shipment schedules or volumes. On the demand front, prices found support from increased interest from China, the leading consumer, as major steel-producing regions resumed operations following the lifting of output restrictions imposed due to a military parade. Furthermore, customs data indicated that China's iron ore imports climbed to over 105 million tonnes in August, an increase of 1.3% compared to the previous month.