Iron ore hasn't been this high in months

Photo by NASA via Getty Images

Iron ore’s epic rally continued overnight.

According to Metal Bulletin, the spot price for benchmark 62% fines jumped by a further 79 cents, or 1.8%, to $44.63 a tonne on Wednesday.

It now sits at the highest level seen since November 23 last year.

For the week the price has now risen 7%, extending the bounce from the all time record low of $38.30 a tonne set on December 11 to 16.5%.

Suggesting that the rebound will continue today, Chinese iron ore and rebar futures rocketed higher in overnight trade.

The most actively traded May 2016 iron ore contract on the Dalian Commodities Exchange rose by 2.6% to 335.5 yuan, leaving it at levels last seen in mid-November.

Rebar futures also bounced on the Shanghai Futures Exchange, finishing the session up 1.37% at 1,844 yuan.

Should these gains be maintained or accelerate upon the resumption of trade at 12pm AEDT, it points to the likelihood of another substantial increase in the spot price arriving later on today.

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