Money & Markets

Iron ore is having a strong start to the year

Photo by Victor Fraile/Getty Images

Iron ore spot markets rose for a second consecutive session on Wednesday.

According to Metal Bulletin, the price for benchmark 62% fines rose 0.3% to $74.97 a tonne, adding to the 2.9% surge seen on Tuesday.

The modest strength in the benchmark was mirrored across higher grades. Ore with 65% Fe content added 0.4% to $90.90 a tonne. The price for 58% fines was steady at $41.56 a tonne.

The modest strength came despite a slide in Chinese rebar futures which closed down 0.9% at 3,809 yuan. Iron ore futures in Dalian also reversed earlier gains, closing down 0.7% at 536 yuan.

As seen in the scoreboard below, there was very little movement upon those levels during Wednesday’s night session.

SHFE Rebar ¥3,814 , -0.81%
DCE Iron Ore ¥537.50 , -0.65%
DCE Coking Coal ¥1,349.50 , -0.59%
DCE Coke ¥2,025.50 , -0.12%

Trade in Chinese commodity futures will resume at midday AEDT, 45 minute before the release of the Caixin-IHS Markit China services PMI report for December.

Despite the name, this report measures activity levels across most Chinese industries, including construction.

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