Iron ore is back above $60 a tonne.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by a further $1.26 to $60.48 a tonne on Wednesday, leaving it at the highest level seen since March 8 this year.
The spot price has now risen by 11.9% in just three trading sessions, extending the year to date rally to 38.8%.
Chinese iron ore futures on the Dalian Commodity Exchange continued to push higher in overnight trade, rising by 1.31% to 424.5 yuan. If sustained or built upon today, it suggests the epic three-day rally will likely extend into a fourth session when daily spot price data is released later this evening AEST.
Analysts at Metal Bulletin put the continued price surge down to strength in Chinese steel prices.
“In the steel market China’s spot rebar prices rose further on today as billet prices climbed to a year-to-date high,” said Metal Bulletin.
Adding to signs that demand for iron ore continues to surge, China’s customs department reported that iron ore imports rose to 85.77 million tonnes in March, up 6.5% on the same month a year earlier. In the year to March, 969 million tonnes of ore were imported by China, the largest 12 month total on record.