Iron ore extended its winning streak into a third consecutive session on Friday, and it looks like there may be further gains to come today.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by a further 0.69%, or 35 cents, to $51.05 a tonne, trimming its weekly decline to 2.87%.
Year to date the price has now gained 17.2%.
The continued strength in the spot price came despite further weakness in Chinese steel prices, often seen as a lead indicator for future price movements in physical iron ore markets.
“China’s spot rebar prices edged down over the past week, on growing downward pressure from slow buying activity,” said analysts at Metal Bulletin.
“Prices resumed their downward march in both the country’s eastern and northern regions, with sellers willing to unload material, while buyers would wait on the sidelines for stronger cuts to appear next week.”
While prices in physical steel markets continue to slide, that hasn’t impacted Chinese commodity futures markets as yet with prices for rebar, iron ore and coking coal all jumping by around 2% on Friday evening.
The most actively traded September 2016 iron ore futures on the Dalian Commodities Exchange surged by 2.18% to 374.5 yuan, signalling that the recent uplift in spot prices may continue should the gains be sustained or built upon on Monday.
Trade in Chinese futures will resume at 11am AEST.