Iron ore rose above $100 a ton on improving sentiment over Chinese economic growth, and as Rio Tinto Group brought forward its timeline for the first shipment from a massive mine in Guinea.
Futures were up more than 1%, heading into triple figures for the first time since May. The steel-making ingredient has recovered over the past few weeks as Chinese officials pledged to tackle excessive competition and outdated capacity, as well as deliver additional property-led policy measures.
Rio said shipments of around half a million to 1 million tons would be exported from the Simfer mine’s block 3 and 4 in Guinea starting November, instead of next year. The Simandou project, a joint venture divided into four blocks between Rio, Winning Consortium and others, is estimated to have total capacity of 120 million tons. Analysts at Royal Bank of Canada expect a ramp-up to 12 million tons in 2026, not reaching 48 million tons until 2028, according to a note to investors.
Analysts at Citigroup Inc. were doubtful as to how long the rally would last, with prices currently above market fundamentals, according to a research note. “We see gradual decline in steel output rather than a one-size-fits-all 50 million ton cut,” analysts including Shreyas Madabushi said.
Iron ore rose 1.1% to $100.10 a ton in Singapore as of 11.57 a.m. local time, while yuan-priced futures in Dalian advanced. Shanghai steel contracts were mixed.
Rio reported second-quarter iron ore shipments from Australia’s Pilbara, the world’s biggest supplying region, steadied at 79.9 million tons. This was slightly under analyst estimates of 81.93 million tons.
This article was generated from an automated news agency feed without modifications to text.
