Iron ore futures are still going nuts

  • Chinese iron ore futures continue to surge.
  • The September 2019 contract in Dalian sits at a record high of 698.5 yuan. It’s jumped 9% from Wednesday.
  • The benchmark iron ore price rose to a five-year high of $99.21 on Thursday, according to Metal Bulletin. If the gains in futures are any guide, there’s likely to be more upside to come.

Chinese iron ore futures just keep on going, surging again on Friday.

The September 2019 contract in Dalian sits at 698.5 yuan at the mid-session break, up from 689.5 yuan on Thursday evening.

That’s a new record high, extending the rally over the past three sessions to 9%. It’s now up close to 60% from late November last year.

On Thursday, the spot price for benchmark 62% iron ore fines jumped 2.3% to $99.21 a tonne, according to Metal Bulletin, touching levels not seen in five years.

The move in futures suggests the benchmark could climb above the $100 a tonne level when Metal Bulletin releases its daily Iron Ore Index later in the session.

Concerns about disruptions to Brazilian iron ore supply, along with record Chinese steel production, have helped to fuel price gains in both spot and physical markets since late January this year.

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