Iron ore futures are ripping higher ahead of Chinese GDP

Photo by Scott E Barbour/Getty Images

Spot iron ore markets ticked higher yesterday, mirroring a recovery in Chinese futures from lows struck earlier in the session.

According to Metal Bulletin, the spot price for benchmark 62% fines lifted three cents to $58.41 a tonne, the third consecutive gain in a row.

It now sits at the highest level since September 7, and extends its rally so far this year to 34.1%.

The tiny move coincided with a bounce in Chinese futures which closed down 0.68% having been down close to 2% earlier in the session. That recovery followed a rally in Chinese stocks which finished Tuesday with gains of over 1%.

Suggesting that the rally in spot markets will resume with gusto today, iron ore futures on the Dalian Commodities Exchange surged again in overnight trade, closing the night session at 447 yuan, up 2.64%.

Rebar and coking coal futures also jumped by more than 2%, the later close to 4%, hinting that the move was related to sentiment towards steel prices.

Trade in Chinese commodity futures will resume at midday AEDT, just a hour before the release of a swathe important Chinese economic data headlined by September quarter GDP.

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