Iron ore is higher with futures pointing to further gains today

Photo by Chris Hyde/Getty Images

Bucking another severe plunge in Chinese futures, the spot iron ore price pushed higher on Tuesday, stabilising after a near 9% plunge in the previous two sessions.

According to Metal Bulletin, the spot price for benchmark 62% fines rose by 27 cents, or 0.5%, to $55.29 a tonne.

It took the year to date increase to 26.8%.

Analysts at Metal Bulletin note that transaction volumes increased markedly during the session, indicating that recent price declines may have enticed buyers back into the market.

Pointing to the likelihood that the spot price may increase again on Wednesday, and that speculative elements in the market are fading, Chinese iron ore futures rose modestly in overnight trade, gaining 0.52%.

There was also a bounce in rebar futures — often seen as a lead indicator for the iron ore contract — which increased 1.65%.

Both contracts will resume trade at 11am AEST.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

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