Iron ore is rallying hard

Photo by Tom Shaw/Getty Images

In line with the 3.61% surge in Chinese iron ore futures Thursday, the spot iron ore price has jumped higher overnight.

According to Metal Bulletin the spot price for benchmark 62% fines rose by 71 cents, or 1.26%, to $57.02 a tonne.

The increase left the spot price at the highest level since July 1.

From the record-low level of $44.59 a tonne struck on July 8 this year, the price has now rebounded by an impressive 27.9%.

Year to date the price has fallen by $14.24, or 20%.

Suggesting that the year to date decline may continue to narrow, the most actively traded January 2016 iron ore contract on the Dalian commodities exchange rose by a further 0.13% to 385.0 yuan overnight.

If sustained today it suggests a modest rise in the spot price could arrive this evening.

Trade in Dalian futures resumes at 11am AEST.

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