Iron ore is going nuts again

Photo: George Marks/Retrofile/Getty.

Iron ore ripped higher on Thursday.

According to Metal Bulletin, the spot price for benchmark 62% fines jumped by 3.28% to $55.66, extending the gain so far this week to 10%.

There was no clear reason to explain the enormous gain. It is now trading at the highest level since May 18.

In June prices rose by 11%, leaving the gain for the quarter at 3.6%. Over the 2016 financial year, the price still declined 6.2%.

Despite the bullish price action seen over the past four days, Chinese iron ore futures failed to respond overnight, closing the session fractionally lower.

The most actively traded September 2016 contract on the Dalian Commodities Exchange slipped by 0.24% to 423 yuan.

Trade in Dalian will resume at 11am AEST, right as China’s National Bureau of Statistics (NBS) will release the nation’s official manufacturing PMI gauge for June.

A reading of 50 is expected, down from 50.1 seen in May.

This data point, along with a specific steel industry PMI report that will be released alongside the manufacturing survey, will likely be influential on movements in Chinese futures on Friday.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.