Iron ore spot markets rose strongly again on Monday, assisted by a sharp turnaround in Chinese futures earlier in the session.
According to Metal Bulletin, the price for benchmark 62% fines jumped by 1.4% to $63.47 a tonne, adding to the 1.7% gain achieved on Friday.
As a result of the back-to-back gains, it now sits at the highest level since September 27.
Elsewhere the price performance was mixed with higher grades outperforming lower grades during the session.
Ore with 65% Fe content rose 1.5% to $81.30 a tonne, masking a 0.7% drop in the price of 58% fines.
The weakness in the latter coincided with news that Chinese iron ore port inventories — of which most are lower grades — rose to 138.48 million tonnes last week, according to Shanghai Steelhome, leaving it at the highest level since August 4.
Iron ore inventories have rebounded in recent weeks as Chinese regulators enforce steel production cuts in northern provinces, limiting demand for lower grade ore.
The strength in mid-and-higher grades on Monday followed a sharp U-turn in Chinese iron ore and rebar futures during the session.
Iron ore futures in Dalian closed up 1.2% at 470 yuan, recovering after starting the session in the red.
Rebar futures in Shanghai followed a similar pattern, opening weaker before closing Monday’s day session up 1.1% at 3,696 yuan.
As seen in the scoreboard below, both contracts consolidated upon those gains in overnight trade.
SHFE Rebar ¥3,705 , 1.09%
DCE Iron Ore ¥471.00 , 1.18%
DCE Coking Coal ¥1,216.00 , 1.80%
DCE Coke ¥1,920.00 , 3.03%
Chinese commodity futures will resume trade at midday AEDT.