The skittish price action in the spot iron ore price continued overnight.
Fresh from tumbling on Friday, the spot price for 62% fines jumped $2.22, or 4.16%, to $55.63 a tonne according to Metal Bulletin.
Not only did it completely reverse the 4% decline seen on Friday, it was also the third day in four that a move of 4% or more in either direction has occurred.
Once strong, the relationship to Dalian iron ore futures has also weakened. The most-actively traded January 2016 contract closed Monday’s session modestly lower, indicating that the spot price was likely to follow suit overnight. Obviously that didn’t occur, quite the opposite.
For what it’s worth Dalian iron ore futures fell closed the overnight session down 0.54%. On current form that points to a gain of over 4% this evening!