Shanghai Metal Network: The hurricane did not cause significant damage to Australia's major ports; iron ore prices retreat

Friday, iron ore futures prices fell as traders unwound bets on supply disruptions after the tropical cyclone “Narelle” did not damage port facilities that are important to Western Australia. The Singapore Exchange’s benchmark April iron ore futures price fell 0.32% from the previous trading day to $107 per ton. This week alone, it has dropped 1%. Atilla Widener, managing director of Navigate Commodities, said iron ore futures may be in a temporary pullback phase because the tropical cyclone “Narelle” did not damage Western Australia’s key port infrastructure, allowing traders to breathe easier. However, Widener added that for iron ore shippers, vessel fuel supply and resupply arrangements remain a major concern. With the situation in the Iran war continuing to deteriorate, it has led to energy supply disruptions, intensifying fuel rationing and pushing up transportation costs. (SHMET)