Iron Ore Bottom In? Prices Reclaim $100 On “Improving Downstream Conditions”

Iron ore futures in Singapore surged above $100 a ton, the highest level since mid-July, as tightening Chinese coking coal supplies lifted steelmaking costs and early signs of improving seasonal demand supported prices across the steel supply chain. Rafael Barcellos, head of Latin American metals and mining, pulp and paper equity research at Bradesco BBI, wrote in a note last week that the coal squeeze is helping support steel prices, with rebar and hot-rolled coil reaching multi-month highs. Improving downstream conditions are, in turn, providing support for iron ore. Barcellos pointed to China’s August manufacturing purchasing managers’ index as another…