The spot iron ore price, having endured a volatile week of trade, continued its rebound on Friday evening.
According to Metal Bulletin’s iron ore index the spot price for 62% fines rose by $1.11, or 2.27%, to $50.10 a tonne.
The increase, following a record percentage plunge on Wednesday and subsequent record percentage gain on Thursday, left the weekly decline at “only” 9.34%.
The gain seen on Friday look set to continue today, at least based off Dalian iron ore futures, with the most actively traded September contract adding an additional 3 yuan to 372 yuan during Friday’s overnight session.
Given the spot iron ore price recovery coincided with the rally in China’s stock market – a curious correlation given the only real similarities between the two are that they are both financial instruments – the performance of Chinese stocks today will likely determine whether the gain in futures is sustained, or reversed, over the course of trade today.