Chinese iron-ore futures surged on Monday, marking the biggest intraday percentage gain since July 2019, as supply concerns deepened after the country’s second-biggest iron-ore supplier Brazil shut down a Vale complex due to coronavirus concerns.
A Brazilian judge ordered the closure of a series of mines operated by Vale in Itabira after 188 workers tested positive for the coronavirus, putting more than 10% of the firm’s iron ore output offline.
The most-traded September contract of iron-ore futures on the Dalian Commodity Exchange soared as much as 7.6% to 798 yuan ($112.74) per tonne, the biggest percentage change since July 9, 2019. It closed up 5.5% at 783 yuan a tonne.