The iron ore price continued to rip higher on Tuesday, recording the largest daily percentage increase seen since early October.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by a further 2.45%, or $1.01, to $42.31 a tonne.
The increase, the eighth in a row, left the price more than 10% above the record low level of $38.30 a tonne struck on December 11.
The price now sit at levels not seen since late November, with the winning streak the longest seen since May 2013.
Pointing to the likelihood that the rally will continue into a ninth session today, Chinese iron ore futures soared in overnight trade. According to the Dalian Commodities Exchange, the most actively traded May 2016 contract jumped by 3.53% to 323 yuan, nearing the 4% “limit up” level it is permitted to move in any one 24 hour period.
Should that gain be maintained during today’s day session in Dalian — beginning at 12pm AEDT — it suggests that there’s likely to be another hefty increase in the spot price later on this evening.
While the commodity is ending 2015 on a bullish note, it has still been an ugly year for Australia’s chief commodity export, falling over 40% year to date.