September-dated futures on China's Dalian Commodity Exchange jumped by more than 5 per cent on Monday to reach ¥692.50 ($US97.34), the highest price obtained for iron ore contracts since the futures exchange was established in 1993.
The rise in prices follows reports of falling shipments from the world's second-largest producer, Brazil.
"Our shipping activity models highlight that supply from Brazil has dropped to the lowest levels seen since the tailings dam catastrophe quarter one [of] 2019," Westpac said. "Brazil is now just behind the UK in terms of highest COVID case count, with daily change rising by 15,000."Under Brazil's right-wing populist President Jair Bolsonaro, the country's national leadership has pushed regional authorities to prioritise the economy over containment of COVID-19, leaving it with close to a quarter of a million cases and the world's fourth-largest total case count.