After spending much of the summer below the psychologically watched $100 threshold, iron ore futures in Singapore rose as much as 1.6% to $101.10, the highest intraday print since July 2. By 12:45 p.m. local time, the contract was up 1.1% at $100.60 a ton. Futures priced in yuan rose by as much as 1.8%.
The kick came from a popular spread being unwound. S&P Global Energy's Pranay Shukla, who oversees research on dry bulk freight and commodities, said, "It's largely being driven by positioning unwinds, as market participants who were previously running a long coking coal, short iron ore spread are now closing out those positions," That is "creating buying pressure and driving upward momentum in iron ore," he added.
Fundamentals are adding some muscle too. Traders are betting mills will rebuild iron ore stocks before China's National Day holidays in October, and they are looking for the usual September pickup in construction. Shipping costs are another tailwind, with dry-bulk rates in London hitting the highest level in nearly five years on Friday. Across industrial metals in London, the tape was mixed, with copper and aluminum slightly lower while lead and zinc pushed higher.
Mood music from Beijing helped. On China's exchanges, Dalian iron ore futures rose 1.3%, while Chinese coking coal eased 3% after a recent rally.
When prices shift, keeping a steady plan matters, so get our free Always Be Buying E-Book to learn more
For everyday investors, the takeaway is simple: short-covering, seasonal demand, higher freight, and policy moves can stack up fast in raw materials. If you have exposure tied to steelmaking or miners, this is a reminder that positioning shifts and China's calendar can move prices in a hurry.
