Iron ore spot markets ripped higher on Friday, closing at a fresh three-month high.
According to Metal Bulletin, the price for benchmark 62% fines jumped 4.9% to $76.36 a tonne, closing at the highest level since September 13.
It gained 6.8% for the week, extending its rally from October 31 to 30.5%.
Mirroring the surge in the benchmark, both lower and higher grades also popped higher on Friday.
The price for 58% fines rose 5.2% to $42.98 a tonne, outpacing a 3.5% increase in ore with 65% Fe content which closed at $90.90 a tonne.
The move in spot markets followed a bounce in Chinese rebar futures, helping drag iron ore and coking coal futures higher during the session.
The May 2018 rebar contract in Shanghai closed at 3,942 yuan, up 2.6% from Thursday’s day session close.
“The financing cost is higher in the year-end and traders are not restocking, so inventories are low,” Bai Jing, an analyst with Galaxy Futures in Beijing, told Reuters. “That suggests re-stocking will kick-in down the road.”
With steel futures pushing higher, iron ore and coking coal contracts also finished higher, closing up 1.9% and 1.1% respectively at 546 yuan and 1,392.5 yuan a tonne.
SHFE Rebar ¥3,942 , 2.58%
DCE Iron Ore ¥546.00 , 1.87%
DCE Coking Coal ¥1,392.50 , 1.05%
DCE Coke ¥2,118.00 , 0.93%
For the week, iron ore futures gained 7.4%, the largest gain since early August. That coincided with a 4.8% surge in rebar futures from the lows seen earlier this week.
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