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.