Iron ore spot markets made back-to-back gains on Thursday, the first time that’s been seen in close to a month.
According to Metal Bulletin, the spot price for benchmark 62% fines rose 1.47% to $55.23 a tonne, extending its rally over the past two sessions to 3.5%.
Despite the recent strength, it still sits just above the one-year low of $53.36 a tonne level struck on Monday, having lost 41.8% since February 21.
Both higher and lower grade ores also rose during the session.
Brazilian ore with 65% Fe content added 0.4% to $71.30, while the price for 58% fines rose by 0.7% to $37.92.
Continuing a familiar theme from recent days, the gains in iron ore followed yet another stonking rally in Chinese rebar futures during Thursday’s session.
“China’s spot rebar prices rose further on Thursday amid gains in the futures and billet market,” said Metal Bulletin. “A second consecutive day of gains in the paper market strengthened spot rebar prices during the day, sources said.”
In overnight trade, Chinese futures closed around the same levels as Thursday’s day session, offering no real clues as to whether the latest upward shift will continue into a third day.
Rebar in futures finished at 3,110 yuan per tonne, down one yuan from Thursday’s day session close. It was a similar story for iron ore futures trading on the Dalian Commodities Exchange which added six yuan overnight, finishing the session at 429 yuan per tonne.
While that provides no real indication as to whether the recent rally will be sustained, it must be remembered that all of the strength in futures over the past two days has occurred during the day session.
Trade in Chinese futures will resume at 11am AEST.