Iron ore futures surged on Wednesday on renewed concerns over the worsening coronavirus crisis in Brazil. Unlike many other countries, Brazil has not enforced a lockdown, resulting in a widespread increase of coronavirus infections.
It was reported that there has been a sudden spike in coronavirus cases in the Brazilian state of Para, where around 29% of the nation’s iron ore is produced.
According to the latest production data, Brazil’s iron ore shipments plummeted by 12% on a year-on-year basis. Credit Suisse Group AG estimated that the market is currently at its “peak tightness” and is likely to persist until July.
Futures in Singapore were trading 2 bucks higher compared with yesterday, with Jun trading near 94.0. Q4 was seen trading up to 84.0 from 83.6 while Jun also traded from 93.7 to 93.85. Following the close, Q4 edged higher, trading as high as 84.25 while Jul also traded at 91.75. Jul/Q4 legged in at 7.5. (FIS)