Earlier today we mused that as the forecasts for iron ore have become increasingly bearish, the price action has become increasingly bullish.
Well, it looks as though we may have seen another bearish forecast released today — Chinese iron ore futures are soaring.
The most actively traded September 2015 contract on the Dalian commodity exchange has put on a further 3% to 454.5 yuan midway through Thursday’s session.
If replicated in the spot price overnight we could be looking at another hefty increase at 9pm (AEST).
On Wednesday, the price for 62% fines settled at $65.39 a tonne according to Metal Bulletin, the highest level seen since March 23 this year.