Iron ore prices rebounded on Thursday, recovering some of the ground lost in the previous session.
The spot price for benchmark 62% fines jumped by 2.9% to $81.50 a tonne, according to Metal Bulletin, rebounding strongly following a 5% plus drop on Wednesday.
Analysts at Metal Bulletin put the move down to another surge in Chinese steel futures.
“Futures dropped early in the morning, but rebounded soon on the news that China’s Ministry of Environmental Protection would deploy 13 teams nationwide to inspect the implementation of environmental protection measures,” the group said.
“Buyers who had put off their procurement plans for several days returned to the market, which led to trading activity picking up.”
Despite questions over the fundamentals underpinning the steel-led moves in iron ore seen recently, and the fact that environmental checks have now been ongoing for several weeks, this continues to dictate movements in both futures and spot markets.
Providing no indication as to which way prices will move on Friday, Chinese iron ore futures finished flat overnight, closing the session at 606 yuan.
There were similarly small movements recorded in coking coal and rebar futures.
Trade in these markets will resume at midday AEDT.