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.