Chinese iron ore futures are surging

Keystone Features/Getty Images

Iron ore futures are surging, partly in response to the decision by China today to weaken its currency.

Approaching the mid-session break the most actively traded January 2016 contract on the Dalian commodities exchange is currently up 3.39% at 381.5 yuan.

According to contract specifications outlined by the exchange, the contract cannot move more than 4% in either direction during any one trading session.

Overnight the January 2016 contract had settled up more than 1%.

With the contract denominated in yuan, the near 2% depreciation in the currency largely explains the surge seen in trade today.

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