The iron ore price rose modestly overnight, snapping a six session losing streak in the process.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by 1.3%, or 69 cents, to $53.57 a tonne. It was the first increase since the record-breaking $9.99 surge on Monday last week, and left the price up 23% year to date.
Analysts at Metal Bulletin note that the up-tick in the price corresponded with an increase in market activity.
“We have seen a significant pick-up in activity today after a very quiet start the week,” said the group. “Today’s rise is only small by comparison but represents an important pause in the recent sharp price falls.”
Suggesting that the gain in the spot price may extend into a second consecutive session, Chinese iron ore and rebar futures pushed higher in overnight trade.
The most actively traded May 2016 iron ore future on the Dalian Commodities Exchange rose by 0.96% to 419.5 yuan. Rebar futures on the Shanghai Futures Exchange near tripled that gain, rising by an impressive 2.84% to 2,103 yuan.
Given the movements in both, it points to the likelihood of a further gain in the spot iron ore price should the gains be sustained or built upon today.
Trade in Chinese futures will resume at 12pm AEDT.