Chinese iron ore futures soared in overnight trade with the most actively traded January 2016 contract on the Dalian commodities exchange surging by 14.5 yuan, or 3.95%, to 382 yuan.
The contract currently sits “limit up”, meaning it cannot rise any further today according to contract specifications.
The surge follows a small bounce in the iron ore spot price, the third consecutive daily gain, with the price for benchmark 62% fines rising 26 cents, or 0.48%, to $53.93 a tonne according to Metal Bulletin.
Should the enormous gain in Dalian futures be maintained during Friday’s day session, it suggests there’ll be a hefty increase in the spot price later on this evening.
Trade in Dalian will resume at 11am AEST.