Iron ore prices continue to soar.
According to Metal Bulletin, the spot price for benchmark 62% fines jumped by another 1.46% on Friday to $63.96 a tonne, extending its gain in 2016 to 46.8%.
It now sits at the highest level seen since April 29.
At $58.32 a tonne, the average price for the 2016/17 year is now roughly in line with the government’s FOB forecast price offered in May’s federal budget which excludes freight costs.
The strength in the benchmark price was mirrored in both lower and higher grade ore, with the gain yet again led by strength in Chinese steel markets, according to Metal Bulletin.
Suggesting that the gains in spot markets will likely carry on today, Chinese iron ore futures continued to rally on Friday evening.
The January 2017 contract on the Dalian Commodities Exchange last traded at 493.5 yuan, up 1.54% for the session.
There were similar gains recorded in rebar, coke and coking coal futures which all logged gains in excess of 1%.
Trade in Chinese commodity futures will resume at midday AEDT.