Chinese iron ore futures are ripping higher

Steve Finn/Getty Images

Having jumped by 2% on Monday, spot iron ore prices may be about to head significantly higher.

The most-actively traded September 2015 contract on the Dalian Commodities Exchange has surged 3.66% on Tuesday, rising 15.5 yuan to 439 yuan.

Having hitting a closing low of 381 yuan back on April 13, the contract has now risen by 15.2%.

On Monday the Chinese government announced an ambitious plan to build more than 1,000 infrastructure projects with the help of the private sector.

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