Iron ore prices are pushing higher with futures pointing to further gains to come

Photo by Win McNamee/Getty Images

Iron ore prices rose fractionally for a second consecutive session on Monday.

According to Metal Bulletin, the spot price for benchmark 62% fines rose by 0.46% to $61.23 a tonne, extending the gains so far this year to over 40%.

Analysts note that the gain corresponded with strength in Chinese steel prices.

Suggesting that the gains may extend today, Chinese iron ore futures closed higher in overnight trade. The January 2017 contract on the Dalian Commodities Exchange last traded at 453 yuan, up 1.8% for the session.

Rebar and coking coal futures also recorded gains of 0.43% and 1.67% respectively.

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

On Monday, Australia’s Fortescue Metals Group announced a 210% lift in full year profits to $US985 million ($A1.3 billion), smashing analyst expectations of about $US800 million.

The pure play iron ore miner’s result was driven by a sustained focus on productivity, bringing costs per wet metric tonne to $US14.31 in June, the 10h consecutive quarterly fall.

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