The spot iron ore price continued to push higher on Monday, with Dalian futures pointing to further gains today.
According to Metal Bulletin’s iron ore index, the spot price for 62% fines rose by a further 20c, or 0.4%, to $50.30 a tonne on Monday. The increase, the third in a row, matches the longest streak of gains since late May.
Not only did the spot price continue to push higher, Dalian iron ore futures, a reasonable guide to future movements in the spot price, rose by 0.41%, or 1.5 yuan, to 369 yuan in overnight trade.
If sustained today, it suggests the winning streak may continue later on this evening. Given the rebound in the iron ore price has coincided with the renewed surge in Chinese stocks, the movements in Chinese markets today are once again likely to be influential.
Accompanied by the recent decline in the Australian dollar, the jump in the iron ore price is good news for the federal budget’s bottom line, and will be no doubt welcomed by Australia’s treasurer Joe Hockey.