Iron ore spot markets continue to rally, recording their fourth consecutive day of gains on Wednesday.
Strong increases were recorded across all grades.
The price of benchmark 62% fines jumped 1.7% to $77.20 a tonne, according to Metal Bulletin, leaving it at the highest level since January 12. It’s rallied 5.9% over the past four sessions.
58% fines added 1.1%, closing at $44.34 a tonne, while ore with 65% Fe content rose 1.6% to settle at $93.40 a tonne.
Chinese iron ore, coking coal and coke futures also rallied, fuelled by signs steel mills were restocking ahead of Lunar New Year holidays.
The May 2018 iron ore contract in Dalian rose close to 1%, finishing Wednesday’s day session at 526.5 yuan a tonne. Coking coal and coke contracts also pushed higher, rising 0.5% and 1.8% respectively to finish at 1,368 yuan and 2,167.5 yuan a tonne.
“An increased interest from physical traders in China looking to restock ahead of next week’s Spring Festival holiday appears to be the catalyst,” said analysts at ANZ Bank.
“Traders were no doubt worried about reports that India has once again revoked mining licences in the iron ore rich region of Goa.”
Rebar contracts, in comparison, slipped marginally, closing down 0.6% at 3,937 yuan a tonne.
As seen in the scoreboard below, there was very little movement on those levels in overnight trade.
SHFE Rebar ¥3,931 , -0.33%
DCE Iron Ore ¥526.00 , 0.57%
DCE Coking Coal ¥1,367.50 , 0.18%
DCE Coke ¥2,154.00 , 0.75%
Given the directionless trade in futures, it provides no clear signal as to how iron ore spot markets will perform today.
Trade will resume at midday AEDT, shortly before the arrival of Chinese trade data for January which will include iron ore import and steel export figures.