Spot iron ore bounces but futures suggest the gain may be short-lived

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The spot iron ore price, having stumbled on Tuesday, resumed its uptrend overnight.

The spot price for 62% fines rose 0.98%, or 49c, to $50.55 a tonne according to Metal Bulletin’s iron ore index.

While it’s a strong bounce, indicating the gains may be reversed this evening, and then some, the most actively-traded January iron ore contract on the Dalian commodities exchange closed the overnight session down 6.5 yuan, or 1.83%, to 348.5 yuan.

If maintained during today’s day session there may be renewed pressure placed on the spot price later on this evening.

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