Iron ore price surges by the most since October 2012

Iron ore. Image: Atlas Iron.

Something strange is afoot. Amidst talk of a collapsing iron ore price there has been a quiet revolution taking place – it’s actually moving higher.

According to MetalBulletin the spot price for 62% grade ore (MBIOI-62) jumped $3 to $54.04 d/mt on Wednesday. The increase, 5.9%, was the largest in percentage terms since October 8, 2012.

While still down 51.4% year on year, the spot price is now 14.8% above the all-time contract low of $47.08 struck on April 2 this year.

Although it’s too early to get excited – we’ve seen similar moves in the past that have unravelled just as fast – the rebound from the April lows is noteworthy, and potentially significant, nonetheless.

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