As suggested by Chinese futures that closed up a mammoth 4% on Wednesday, the iron ore rally has accelerated again.
According to Metal Bulletin, the spot price for benchmark 62% ore jumped by 76 cents, or 1.32%, to $58.18 a tonne.
It was the largest percentage increase since August 28, and left the price at the highest level since July 1.
From its all time record low of $44.59 struck on July 8, the spot price has now added a nifty 30.5%. Year-to-date it is still down 18.4%.
As was the case with risk assets generally on Wednesday, Metal Bulletin put the rally in the spot price down to hopes for additional fiscal stimulus from China’s government.
“China’s finance ministry announced late on Tuesday that it would implement “stronger” financial policies and make “timely” adjustments to promote sustained and healthy economic growth, which led to overnight gains in stock and commodities markets. Ferrous futures contracts all jumped from Tuesday’s levels, with the benchmark January iron ore contract hitting the upper limit this morning before closing just slightly below that”, it noted.
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