Iron ore spot markets ripped higher to start the week with strong gains recorded across all grades.
The price for benchmark 62% fines jumped 1.8% to $75.70 a tonne, according to Metal Bulletin, adding to the 2.1% gain seen on Friday.
It currently sits at the highest level since January 22.
Like the benchmark, both lower and higher grades rallied hard during the session.
58% fines surged 4% to $43.64 a tonne, recovering after logging a small dip on Friday. Ore with 65% Fe content continued to push higher, adding a further 1.9% to settle at $91.70 a tonne.
The move in spot markets coincided with renewed strength in Chinese iron ore futures, helping to offset modest weakness in rebar contracts.
The May 2018 iron ore contract in Dalian rose 1.2% to 519.5 yuan a tonne, extending the rally that began late last week. In contrast, rebar futures in Shanghai softened, losing 0.2% to close at 3,942 yuan a tonne.
Strong gains were also recorded in coking coal and coke contracts which rallied 2.6% and 3% respectively, finishing Monday’s day session at 1,347 yuan and 2,094.5 yuan a tonne respectively.
With market activity winding down ahead of Lunar New Year celebrations that will begin next week, analysts said it was contributing to the choppy price movements seen in recent days.
Regardless of the volumes driving the moves in futures, all four contracts posted further gains in overnight trade.
Here’s the scoreboard.
SHFE Rebar ¥3,973 , 0.68%
DCE Iron Ore ¥525.50 , 1.15%
DCE Coking Coal ¥1,368.50 , 1.56%
DCE Coke ¥2,140.00 , 3.11%
The gains in futures point to the likelihood that spot markets will follow suit again today, at least based on early indications.
Trade in all Chinese commodity futures will resume at midday AEDT.