Iron ore extends gains on supply concerns

Iron ore futures rose above CNY 807 per tonne on Wednesday, reaching a seven-week high as supply risks mounted around Guinea’s massive Simandou project.

Australian miner Rio Tinto may be required to build a refinery in the country, potentially reducing ore available for export. Meanwhile, a fire at a major Brazilian export hub added to supply concerns, though miner Vale said the incident did not affect shipment schedules or volumes.

On the demand side, prices were supported by stronger appetite from top consumer China, where major furnace hubs resumed steel production after output curbs tied to the military parade were lifted.

Customs data also showed China’s iron ore imports rose above 105 million tonnes in August, up 1.3% from the previous month.