Iron Ore Jumps 1.6% as China Orders Tangshan Mill Shutdowns

Iron ore futures rose as much as 1.6% in Singapore on Monday, touching roughly $103.50 a metric ton and extending last week’s 2.1% gain. The rally followed a report from Chinese consultancy Mysteel saying several mills in Tangshan, the country’s main steel-producing hub, have been instructed to suspend production from 25 August to curb air pollution ahead of a military parade early next month. Analysts said the prospect of temporary shutdowns is prompting mills elsewhere to rebuild inventories, bolstering demand for the steelmaking ingredient. ANZ Bank noted that China’s latest trade data show a pick-up in iron ore imports, reinforcing the restocking trend. The broader industrial-metals complex also benefited from signs of firmer Chinese consumption and a weaker dollar. Copper prices climbed for a fourth session, reaching their highest level in more than a week.