Iron Ore Thunders Higher as Mine Dams Closed, Exports Collapse
- Barclays increases price forecast as ‘market flips to deficit’
- Benchmark spot ore prices climb to the highest in two years
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Iron ore’s supply-driven rally picked up pace on Wednesday, with futures topping $90 a ton, amid increasing concern the crisis at Brazil’s Vale SA will be drawn out as regulators ordered dozens of dams to be shut.
Futures for benchmark material rallied as much as 4.1 percent in Singapore, while spot ore climbed to a two-year high and the contract for high-grade ore extended gains above $100 a ton. Barclays Plc raised price forecasts on expectations for a global deficit.