Iron ore spot markets climbed again on Friday, extending its winning streak to a third consecutive session.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by 0.94% to $55.75 a tonne, taking its gain from the one-year low of $53.36 a tonne struck on Tuesday to 4.5%.
Both higher and lower grade ores also bounced on Friday, albeit by a smaller margin that the benchmark price.
At three, the winning streak for the benchmark is now the longest since April 21. Another gain on Monday — should it arrive — will see the streak become the longest since early February this year.
Still, even with the latest rally, the benchmark price is still down 41.2% from February 21.
Vivek Dhar, mining and energy commodities analyst at the Commonwealth Bank, said that firmer steel prices has contributed to iron ore’s recent recovery, noting that they encouraged Chinese steel mills to boost output and purchase raw materials.
While Chinese rebar futures rallied to a two-week high on Friday, Metal Bulletin said that spot markets went in the other direction, falling modestly in eastern regions amidst thin trading conditions.
Something that may provide a clue as to whether the steel-led iron ore recovery can be sustained in the session’s ahead.
Providing absolutely no clue as to whether the current winning streak will extend into a fourth session on Monday, Chinese futures closed largely unchanged on Saturday morning.
The most actively traded October 2017 rebar future on the Shanghai Futures Exchange closed up 0.06 at 3,115 yuan, while the September 2017 iron ore future on the Dalian Commodities Exchange added 0.23% to 430.5 yuan.
Very timid moves, unusually small compared to what has been seen in recent sessions.
Trade in Chinese futures will resume at 11am AEST.