Iron ore could hit a 2.5-year high today

A steelworker in Chongqing, China. Photo by China Photos / Getty Images

Spot iron ore markets continued to push higher on Wednesday, coming within a whisker of hitting a fresh multi-year high following another unbelievable surge in futures.

And, with futures up overnight, it could well hit a new high today.

According to Metal Bulletin, the spot price for benchmark 62% fines rose by 0.29% to $83.53 a tonne, extending its gain in 2017 to 5.9%.

It has now rallied 118% from the lows struck in mid-December 2015, and sits just 12 cents below the 2.5-year high of $83.65 a tonne level hit on January 16.

The gain registered in the benchmark price was also replicated across higher and lower grade ores.

While Chinese futures have not been the best gauge of spot market movements recently — at least in terms of scale — another rally in overnight trade suggests that a new high could arrive on Thursday.

The May 2017 contract traded on the Dalian Commodities Exchange closed up 1.18% at 643.5 yuan, higher than the day session’s closing level of 641 yuan.

Rebar futures — often influential on movements in iron ore markets — also rose, closing up 1.19% at 3,236 yuan.

Trade in Chinese commodity futures will resume at midday AEDT.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.