Iron ore price rises as China markets reopen after holiday

The iron ore price rose on Friday after a week-long holiday in China, with market participants upbeat about demand prospects for the raw material in the world’s top steel producer.

China’s electricity shortage has raised concerns energy-intensive electric arc furnaces that utilize iron scraps to produce steel could be hit, which means more steel output required from blast furnaces using iron ore.

The most-traded January iron ore on China’s Dalian Commodity Exchange was 4.9% higher at 762.50 yuan ($118.24) a tonne Friday morning, just below a session-high 769 yuan, its strongest since September 6.