Iron ore spot markets steadied on Friday, posting modest gains after falling for the first time in six sessions on Thursday.
According to Metal Bulletin, the price for benchmark 62% fines rose 0.39% to $56.75 a tonne, extending its bounce from June 13 to 6.35%.
Both higher and lower grade ores posted modest gains for the session.
Somewhat unusually, the strength came despite continued weakness in Chinese steel markets.
“China’s spot rebar prices continued to fall for a fourth continuous day on Friday as pessimism grew. The bearish sentiment in spot market kept growing as wet weather kept trading thin,” said Metal Bulletin.
“Rebar futures also performed poorly during most of the day before it rebounding in the last half hour of trading, which further weighed on spot prices.”
The late rally in rebar futures also dragged iron ore futures along for the ride, perhaps explaining the modest gains in spot markets seen during the session.
In overnight trade on Friday, iron ore futures gave back much of the day session gains while rebar futures held firm.
The most actively traded September 2017 iron ore contract in Dalian finished flat at 429.5 yuan, while rebar futures in Shanghai closed up 1.67% at 3,113 yuan, holding around the same levels it closed at during the previous session.
SHFE Rebar ¥3,113 , 1.67%
DCE Iron Ore ¥429.50 , 0.00%
DCE Coking Coal ¥1,030.50 , -0.63%
DCE Coke ¥1,625.00 , -0.03%
Trade in Chinese commodity futures will resume at 11am AEST.