Iron ore’s losing streak is over.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by 0.16% to $55.77 a tonne on Tuesday, leaving its year to date gain at 28%.
Although small, it was the first increase seen since September 2. Since that date, the price has lost 6.1%.
Analysts at Metal Bulletin note the gain corresponded with Chinese iron ore production figures for August that revealed output continued to decline last month despite higher spot prices.
“China’s National Bureau of Statistics have announced that domestic iron ore production continued to shrink in August, as the country maintained imports of the steelmaking raw material at high levels,” said analysts at the group.
“Its run-of-mine (ROM) iron ore output totalled 115.1 million tonnes last month, down 3.3% on the year. The ROM production rate last month — an average of 3.71 million tonnes per day — is marginally lower than July’s 3.73 million tonnes per day.
“In the first eight months of 2016, China mined 824.70 million tonnes of iron ore, down 2.3% compared with the same period last year,” it said.
Fitting with the small gain registered in spot markets, Chinese iron ore futures rose in overnight trade.
The January 2017 contract on the Dalian Commodities Exchange last traded at 399 yuan, up 0.38% for the session. That gain mirrored similar moves in Chinese coking coal and rebar futures.
Trade in Chinese commodity futures will resume at 11am AEST.
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