“WEATHER-related disruptions” have been noted as a factor in driving up bulk commodity markets from both Australia and Brazil.
ANZ senior commodity strategist Daniel Hynes noted the impact in a report on commodities published this week.
“Iron ore futures rose on both Dalian and Singapore exchanges as trader focus returned to the supply side,” Mr Hynes wrote.
“The disruptions to output in Australia and Brazil are continuing to impact inventories. Port stockpiles in China sank to their lowest level since 2017.”
Mr Hynes noted this had been driven by a large fall in Australian sourced ore, as the recent weather-related disruptions moved through the supply chain.
“However the gains were muted with data showing that exports from both Australia and Brazil picked up in May,” he stated.
He noted coal markets were also higher, with traders holding back cargoes due to low prices.
However, in the wider Asian market, Newcastle coal futures were said to have remained under pressure.