Iron ore prices continued to rip higher on Wednesday, extending the gains seen so far this week to nearly 5%.
The spot price for benchmark 62% fines jumped by a further 0.95% to $58.63 a tonne, according to Metal Bulletin, leaving the percentage gain over the past three sessions at 4.94%.
So far in 2016 the benchmark price has risen by over 34%.
The gains for lower grade or were even steeper, with the price for 58% fines leaping 1.76% to $46.87.
Analysts at Metal Bulletin note the move coincided with gains in Chinese steel prices, following a steep rally in Chinese rebar futures.
Some also speculate that calls for an anti-dumping investigation enquiry from Chinese iron ore producers relating to the activities of large offshore iron ore miners — including Rio Tinto and BHP Billiton — may be contributing to the rally in spot prices.
“A huge volume of low-priced imported iron ore has had a severe impact on the domestic mining industry and even posed a big challenge for the security of steel production,” more than 20 Chinese miners said in a statement on the website of the Metallurgical Miners’ Association of China, according to Reuters.
Whether the reason or not, Chinese iron ore futures continue to climb.
In overnight trade, the September 2016 contract on the Dalian Commodities Exchange closed up 1.64% at 465 yuan, although it did trade significantly higher over the course of Wednesday’s day session.
Trade in Chinese commodity futures will resume at 11am AEST.