Iron ore prices continued to rally on Tuesday, taking the benchmark spot price to within touching distance of the $80 a tonne level.
And it looks like it may get there on Wednesday if Chinese futures are anything to go by.
According to Metal Bulletin, the spot price for 62% fines rose by a further 1.4% to $79.73 a tonne, extending its gain in 2016 to 83%.
It now sits just 1.4% below the multi-year peak of $80.83 a tonne struck on November 28.
Like the benchmark price, the prices for both lower and higher grade ore rallied on Tuesday.
Analysts at Metal Bulletin said that market activity was quiet, potentially due to a slowdown in the wild swings in Chinese futures.
However, that was then, not now, with iron ore futures traders buying with renewed gusto in the overnight session, potentially laying the foundation for the benchmark spot price to rise above the $80 a tonne level on Wednesday.
The most actively traded May 2017 contract on the Dalian Commodities Exchange jumped by 3.22%, closing the session at 624.5 yuan.
Rebar, coking coal and coke futures also added 2.95%, 1.29% and 2.08% respectively.
Trade in Chinese futures will resume at Midday AEDT.
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