Iron ore spot markets rebounded on Thursday after two days of modest losses.
According to Metal Bulletin, the price for benchmark 62% fines added 0.87% to $72.93 a tonne, extending its gain for the week to 6.1%.
Higher grades outperformed the benchmark with ore with 65% Fe content rising 1% to $90.40. The price for 58% fines was unchanged at $47.83.
The modest gains coincided with a slow and steady climb in Chinese rebar future which hit the highest level since September 2013 earlier in the session.
Strength in Chinese steel prices, leaving production margins at elevated levels, is encouraging Chinese steel mills to increase output rates to take advantage of strong profitability conditions.
As a key input, this has naturally helped to support iron ore prices over the past seven weeks.
And that trend continued in overnight trade in futures, hinting that spot iron ore markets may strengthen today.
Here’s the scoreboard from Thursday’s night session.
SHFE Rebar ¥3,791 , 1.20%
DCE Iron Ore ¥576.00 , 1.32%
DCE Coking Coal ¥1,305.00 , -0.87%
Rebar and iron ore futures closed Thursday’s day session at 3,776 yuan and 570.5 yuan respectively.
Trade in Chinese commodity futures will resume at 11am AEST.