Iron ore prices rose fractionally on Friday, helping to trim losses seen earlier in the week.
The spot price for benchmark 62% fines rose by 0.18% to $55.17 a tonne, according to Metal Bulletin, helping to trim the loss from July 4 to 1.87%. Year to date it has risen 26.6%.
Analysts at Metal Bulletin put the increase down to renewed strength in Chinese steel prices.
“China’s spot rebar market strengthened further on Friday amid steady billet prices in Tangshan,” said the group. “A rumoured upcoming
production halt in Tangshan continued to circulate in the market, leading to traders raising their prices further.”
Looking ahead to Monday, iron ore futures are pointed higher on the Dalian Commodities Exchange with the most actively traded September 2016 contract sitting up 0.71% at 426.5 yuan.
There have been similar moves in rebar and coking coal futures, linking the price gains back to the physical steel market.
Trade in Chinese futures will resume at 11am AEST.