Iron ore spot markets continued to rally on Monday, logging the eighth increase in the past nine sessions.
According to Metal Bulletin, the price for benchmark 62% fines surged 3.7% to $72.68 a tonne, leaving it at the highest level since September 14.
It’s now gained 24.2% since the end of October, leaving it in a technical bull market.
Lower and higher grade ores also rallied hard during the session.
The price of 58% fines surged 4.2% to $41.37 a tonne, outpacing a 3% gain for ore with 65% Fe content which settled at $89.40 a tonne.
The move yet again corresponded with strength in Chinese steel futures, boosted by ongoing production cuts on environmental grounds which have seen rebar inventories held by Chinese traders fall to the lowest level in at least six years.
According to data from SteelHome consultancy, inventories held by Chinese traders fell to 3.03 million tonnes last week, the lowest since since records began in 2011.
Rebar futures in Shanghai surged 2% to 4,065 yuan having earlier hit a high of 4,104 yuan, the loftiest level seen since September 6. That prompted even larger gains in iron ore futures in Dalian which jumped 4.8% to 548 yuan, the highest level since September 13.
A seen in the scoreboard below, those gains were largely sustained in overnight trade.
SHFE Rebar ¥4,065 , 0.64%
DCE Iron Ore ¥547.00 , 0.92%
DCE Coking Coal ¥1,387.50 , -1.07%
DCE Coke ¥2,224.00 , 0.63%
Trade in Chinese commodity futures will resume at midday AEDT.