Iron-ore futures edged higher in see-saw trade on Wednesday, with both Singapore and Dalian benchmarks reversing early losses, supported by strong Chinese demand for the steelmaking ingredient and worries about supply.
Iron ore on China’s Dalian Commodity Exchange closed the day 0.4% higher at 888 yuan ($127.72) a tonne, adding to solid gains that helped push spot prices to 12-month highs.
The Singapore Exchange’s benchmark price was up 0.1% at $111.75 a tonne in afternoon trade, extending gains into a seventh session.
"Higher steel prices have encouraged steel mills to keep their output elevated, sustaining iron ore demand. Meanwhile, effective iron ore supply is limited," said Richard Lu, senior analyst at CRU Group in Beijing.