Iron ore stocks are soaring again

Stocks with exposure to iron ore jumped in value again today as global commodity prices continued to improve.

Fortescue Metals, the pure play big miner, was up 13% to $2.50. Fortescue is one of the most shorted stocks on the ASX and the current surge could put the stock in position for a short squeeze.

Among the other iron ore stocks, BC Iron was up 23% to $0.52 and Grange Resources 4.55% to $0.115.

The big resources companies also benefited from higher iron ore prices with Rio Tinto’s shares up 3.13% to $59.60 and BHP 1.87% to $32.65.

Iron ore is trading around $US57 a tonne, up from lows of $US47. Smaller producers are feeling the strain of prices, which have fallen 60% in a year. Atlas Iron is mothballing its operations and mining services companies are losing revenue.

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