Iron ore futures storm higher ahead of Xi's key speech

Nick Laham/Getty Images
  • Chinese iron ore spot markets recorded across-the-board gains on Monday, assisted by strength in Chinese steel prices.
  • Rebar and iron ore futures surged in overnight trade.
  • Chinese Premier Xi Jinping will deliver a speech to the Boao Forum for Asia later today. Economic reforms and trade policy are expected to feature.

Iron ore spot markets rose across the board on Monday, encouraged by renewed gains in Chinese steel prices.

And with futures screeching higher overnight, it looks like there may be even larger gains to come on Tuesday.

According to Metal Bulletin, the spot price for benchmark 62% fines rose 0.6% to $63.95 a tonne, breaking the stalemate seen in the prior two sessions caused by public holidays in China.

The gains in the benchmark were bettered by higher and lower grades on Monday.

Ore with 65% Fe content jumped 1.2% to $81.70 a tonne. 58% fines added to 1.1% to settle at $37.71 a tonne.

The across-the-board gains followed a small increase in rebar futures.

The most actively traded October 2018 contract in Shanghai closed up 0.6% at 3,362 yuan a tonne, bucking the trend seen in Chinese iron ore futures during the session.

However, as seen in the scoreboard below, both contracts stormed higher in overnight trade, hinting that spot markets may follow suit today.

SHFE Rebar ¥3,434 , 2.14%
DCE Iron Ore ¥452.50 , 3.08%
DCE Coking Coal ¥1,290.50 , 0.08%
DCE Coke ¥1,879.00 , 0.62%

Chinese President Xi Jinping will deliver a speech to the Boao Forum for Asia later today, providing some clues as to what drove the unusually large moves overnight.

Economic reforms and trade policy are expected to feature in the speech.

Trade in Chinese commodity futures will resume at 11am AEST.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.