The spot iron ore price continues to gyrate wildly.
Down 2.67%. Down 1.48%. Down 0.48%. Up 2.55%. Down 2.27%. They were the wild price movements in the spot price for benchmark 62% fines last week.
It’s enough to give you whiplash, or a mild case of vertigo.
That pattern continued on Monday with the benchmark spot price rallying by 1.77% to $56.86 a tonne, according to Metal Bulletin.
It took the year to date gains to 30.5%.
There was no discernible reason to explain the surge, and came despite weakness in spot rebar markets.
Analysts at Metal Bulletin noted that the “market saw an increase in activity today after a very quiet period last week”. It also followed another sharp turnaround in Dalian futures on Monday, rallying from a modest loss to a gain immediately upon the open.
Dalian iron ore futures closed with a modest gain of 0.8% in overnight trade, leaving the September 2016 contract sitting at 439.5 yuan.
Trade in Dalian will resume at 11am AEST.