Iron ore futures surged above 109 in London morning on Wednesday, reversing early losses in Asia, on fresh concerns of coronavirus outbreak in China.
According to sources at port, a crew member in Lianyun Port was rumoured to have contracted the coronavirus, leading to fears of possible delays in ships unloading. So far, China has been relatively successful in preventing a second spike of new cases as it reopened its economy.
Earlier the day in Asia, market tumbled below 108 as investors assessed whether the strong Chinese demand would continue after a jump in imports to help fuel an economic recovery from the coronavirus pandemic.
China’s steel exports fell to a 7-year low due to robust domestic steel demand, according to custom data. Platts believe that steel demand is likely to remain robust for the remainder of the year.
Having slumped to as low as 107.6 in Asia, iron ore made a robust recovery in London, with Aug trading as high as 109.05. Jul also traded between 108.7 and 109.0 while Cal21 traded at 87.65 around the time Aug was paid at 109.05.