Iron ore is rallying again


As predicted by Dalian iron ore futures, the spot iron ore price jumped higher on Monday.

According to Metal Bulletin’s iron ore index the spot price for 62% fines jumped by $1.73, or 3.41%, to $52.39 a tonne.

Having plummeted to a record-low level of $44.59 on July 8, the spot price has now increased by 17.5% in just seven trading sessions. At $52.39, the price is also at the highest level seen since July 3.

There was no specific reason to explain the sudden price surge although Metal Bulletin notes that Monday “was a particularly active day on the physical spot market with several transactions concluded on the COREX and Globalore platforms”.

Overnight Dalian iron ore futures jumped by a further 2.65% to 368 yuan, suggesting further gains for the spot price may arrive this evening should futures maintain their gain today.

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