Wednesday, October 17, 2018
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iron ore surges most since october as plunge spurs cargo demand

iron ore jumped the most since october amid speculation that a collapse in prices for the steelmaking raw material is spurring a surge in demand.

ore with 62 percent iron content climbed 4.2 percent to $116.60 a dry metric ton at tianjin in northeast china, according to prices from the steel index ltd. that's the biggest gain since the 6.2 percent increase on oct. 9.

stronger demand spurred the rebound, ben goggin, a london-based broker of iron-ore swaps at icap plc, said by e-mail today. traders began increasing purchases on may 31, when the price slumped to $110.40 a ton, the lowest in almost seven months, he said.

"it appears that traders are diving in," goggin said by e-mail today. "it looks like they are making a play based on the expectation that it dropped to a level and found support."

to contact the reporter on this story: alaric nightingale in london at This email address is being protected from spambots. You need JavaScript enabled to view it.

to contact the editor responsible for this story: stuart wallace at This email address is being protected from spambots. You need JavaScript enabled to view it.

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