Iron ore hurtles back above $50 a tonne

Photo by Michael Dodge/Getty Images

The iron ore price leapt back above the $50 a tonne level on Friday, recording the largest one day percentage gains seen in months.

According to Metal Bulletin, the spot price for benchmark 62% fines rose by 3.94%, or $1.90, to $50.08 a tonne.

It was the largest percentage increase seen since April 29 this year, and left the year to date gain at 15%.

There was no one reason to explain the sudden bounce, other than the price has been pummelled of late, dropping 29% from April 21.

Despite the heroics on Friday, the benchmark price still lost 2.1% for the week.

Indicating that the gains in the physical market may extend into a second session on Monday, Chinese iron ore futures rose on Friday evening, adding 0.58% to 349.5 yuan.

If sustained or built upon during Monday’s day session, it points to the likelihood of a further rise in the spot price arriving later on this evening.

Trade will resume at 11am AEST.

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