The iron ore price rebounded strongly on Monday, recovering around half the ground lost in the previous two sessions.
Metal Bulletin’s iron ore index surged by 2.75%, or $1.33, to $49.62 a tonne, leaving its year to date gain at 13.9%.
Strength in Chinese rebar futures likely contributed to the strong rebound.
Pointing to the likelihood that Monday’s bounce may continue today, Chinese iron ore and rebar futures both closed up 1.65% in overnight trade.
Should these gains be maintained or built upon today, it will increase the likelihood of a further rise in the spot iron ore later on this evening.