The iron ore price rose strongly for a second consecutive session on Wednesday, extending its rally so far this year to over 30%.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by 1.8%, or $1, to $56.78 a tonne, taking its two-day rally to 4.5%.
The gains in the benchmark price came despite no change in spot rebar pricing on Wednesday, and bucked the trend in lower grade ore which fell fractionally for the session.
Indicating that the gains may be about to reverse, Chinese iron ore futures on the Dalian Commodities Exchange fell heavily overnight, sliding 1.45% to 375 yuan.
There were also similar moves in coking coal and rebar futures.
If these losses are sustained during Thursday’s day session, beginning at 11am AEST, it points to the likelihood of a fall in the spot price arriving later on this evening.