Iron ore bounced on Friday


The iron ore price rose strongly for a second consecutive session on Friday, bucking weakness seen in other commodity markets.

According to Metal Bulletin, the spot price for benchmark 62% fines rose by 2.24%, or 90 cents, to $41.12 a tonne, extending the two-day gain for the commodity to 4.07%.

Despite the recent bounce, year to date it has still fallen by 6%, taking the decline from the start of 2015 to 42%.

Indicating that the rally may come to an end today, Chinese iron ore futures fell modestly to end the trading week.

The most actively traded May 2016 contract on the Dalian Commodities Exchange fell by 0.32% to 307 yuan on Friday evening.

If sustained during Monday’s day session – beginning at 12pm AEDT – it points to the likelihood of renewed weakness in the spot price arriving later on this evening.

This week sees the release of a raft of important economic data in China, including the closely watched Q4 GDP figure on Tuesday.

Markets are looking for an annual growth rate of 6.8% in the December quarter, down from 6.9% seen in Q3 2015.

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