Iron ore edges higher as Chinese traders return

Photo by Kevin Frayer/Getty Images

Iron ore spot markets pushed higher on Friday, reversing all of the declines and more from last Thursday.

According to Metal Bulletin, the price for benchmark 62% fines rose by 1.2% to $62.24 a tonne, completely reversing a 0.9% decline on Thursday.

Prices for lower and higher grade ores were unchanged for the session.

Trade was once again incredibly thin with Chinese markets closed for Golden Week holidays.

However, with Chinese traders coming back online, that looks set to change today. Chinese commodity futures will resume trade at midday AEDT.

Having fallen over 20% in September, leaving it in a technical bear market, many will be watching to to see if the weakness in spot and futures will resume today.

Longer-term, analysts at the National Australia Bank (NAB), think that the benchmark spot price will oscillate around its present level over the course of 2018.

“We see the spot price trending around the $US60 a tonne mark across the next year, given ample supply in global markets,” said Gerard Burg, senior Asia economist at the NAB.

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