Iron ore spot markets ripped higher for a second consecutive session on Monday as Chinese steel prices rallied.
According to Metal Bulletin, the spot price for benchmark 62% fines jumped by 2.0% to $64.05 a tonne, extending its rally from last Thursday to 3.4%.
Gains were also recorded across lower and higher grades with the former outperforming after falling modestly on Friday.
The price for 58% fines added 2.05% to $44.27 a tonne. After storming higher in the previous session, Brazilian ore with 65% Fe content underperformed, adding 0.25% to $80.70 a tonne.
Metal Bulletin said that the broad-based strength followed strong gains in Chinese steel markets over the weekend.
“China’s spot rebar prices rebound amid gains in billet,” the group said. “The billet price rose 20 yuan per tonne on Saturday on good demand and moved up a further 20 yuan per tonne on Monday morning, leading to bullish sentiment on the rebar market.”
Metal Bulletin said that trade was brisk as buyers returned to the market.
It also corresponded with renewed buying in Chinese iron ore and rebar futures, something that continued in overnight trade.
The most actively traded rebar contract in Shanghai finished the session at 3,463 yuan, up 0.7%. Iron ore futures in Dalian fared even better, adding 1.56% to close at 487.5 yuan.
Both closed Monday’s day session at 3,442 yuan and 480 yuan respectively.
Coke and coking coal contracts also rallied hard adding 1.51% and 2.93% during the overnight session.
Trade in Chinese commodity futures will resume at 11am AEST.