Iron ore futures rebounded on Wednesday, February 12, 2025, as investors grew concerned about potential supply disruptions from Australia, a major producer, and anticipated increased demand in China. This surge followed a previous price slide of over 1% due to new tariffs imposed by U.S. President Donald Trump.
The most-traded May iron ore contract on China's Dalian Commodity Exchange (DCE) increased by 0.43% to 824.5 yuan ($112.83) per metric ton. The March iron ore benchmark on the Singapore Exchange also rose, climbing 1.76% to $107.75 a ton, reaching its highest level since October 16, 2024.
The anticipated closure of Port Hedland in Western Australia, the world's largest iron ore export hub, due to Tropical Cyclone Zelia, fueled concerns about supply disruptions and boosted investor sentiment. Expectations of rising demand also contributed to the price increase, as favorable weather conditions are expected to boost outdoor construction activities.
Additionally, steel mills resuming operations after the Lunar New Year holidays in China, supported by relatively strong profitability, are expected to drive up hot metal output, a key indicator of iron ore demand.
