The iron ore price rout is over, at least in the interim.
Spot prices jumped on Friday while Chinese futures held onto earlier gains on Friday evening.
According to Metal Bulletin, the spot price for benchmark 62% fines jumped by 3.25% to $57.79 a tonne on Friday, partially reversing a 4.32% drop in the previous two sessions.
Year to date it has still fallen 26.73%, with the decline from late February standing at a larger 39.1%.
Higher and lower grade ores also rose for the session, albeit by a smaller margin.
Hinting that the uplift may have been caused by profit-taking among speculative investors rather than fundamental factors, Metal Bulletin said that Chinese steel prices weakened over the session.
“China’s spot rebar prices continued to weaken on Friday June 2 amid drops in the billet and futures markets,” it said.
“The price drop in the billet market late on Thursday and weak futures on Friday both weighed on spot rebar prices. However, spot market inventories continued to decrease, which kept traders from making too big a price cut.”
On Friday evening, Chinese iron ore futures managed to cling onto earlier gains, closing trade up 2.93% at 439 yuan. That came despite continued weakness in rebar futurrs which closed down 0.85% at 3,085 yuan.
Coke and coking coal futures also managed to close the session in the black.
SHFE Rebar ¥3,031 , -0.85%
DCE Iron Ore ¥439.00 , 2.93%
DCE Coking Coal ¥955.50 , 1.33%
DCE Coke ¥1,412.00 , 0.79%
Trade in Chinese commodity futures will resume at 11am AEST.
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