Iron ore ended what was a dismal 2015 on a bright note, rallying for the tenth session in a row on New Year’s Eve.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by a further 14 cents, or 0.35%, to $43.57 a tonne.
At ten, the stretch of gains is now the longest seen since March 2012, and leaves the rally from the all time record low of $38.30 a tonne struck on December 11 at 13.8%.
Despite the late surge, over the year the benchmark price fell 38.85%, leaving the decline from the all time peak in early 2011 at 77.3%.
Analysts at Metal Bulletin suggest that the sharp decline was merely due to supply outstripping demand, describing the price action witnessed over the year as “dismal.”
“2015 has been a fairly dismal year for iron ore price. New supply entered the market after an extended period of high prices saw large investments by the major miners. The effects of this, along with slowing Chinese demand, saw prices hit record lows,” they wrote.
“Spot prices have been fairly volatile this year having dropped from levels around $70/tonne in January. The MBIOI-62 averaged $55.54/tonne during 2015.”
Chinese iron ore futures, along with daily spot pricing, will resume later in the session.