For the first time since early November, the spot iron ore price has recorded back-to-back daily gains.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by a further 36 cents, or 0.77%, to $39.36 a tonne.
It was the first time since November 11 than two consecutive gains had occurred, and trimmed this years loss to 44.8%.
Despite the strength in spot, Chinese iron ore futures reverted to a familiar pattern overnight, slumping after recording two days of solid gains.
The most actively traded May 2016 contract on the Dalian Commodities Exchange fell by 1.2% to 289 yuan. The January 2016 contract – carrying less open interest but whose movements are more aligned with changes in spot – slumped even further, dropping 1.94% to 304 yuan.
If sustained during today’s day session in Dalian, beginning at 12pm AEDT, it points to the likelihood of a large decline in the spot price when it is released at 10pm AEDT this evening.