There’s just no stopping iron ore right now.
After surging 4.5% on Tuesday, the spot price for benchmark 62% fines continued to rip higher on Wednesday, rising by another 1.8% to $63.07 a tonne, according to Metal Bulletin.
It now sits at the highest level seen since May 3, a fresh six-month high.
Since Golden Week holidays in China ended in early October, the price has now gained 12.9%, extending its rally in 2016 to an amazing 45%.
As was the case on Tuesday, the strength in the benchmark price was replicated across both higher and lower grade ores — it’s all looking bullish.
Analysts at Metal Bulletin note that the strength in iron ore came despite a mixed performance from steel markets in China, something that has a tendency to lead movements in the former.
“China’s spot rebar prices stopped rising amid thin trading, with futures falling after surging a day earlier,” it said. “Rebar futures retreated during the day, which kept participants in the spot market from raising their prices any further.”
Despite the mixed performance in steel markets, it looks like iron ore’s rally isn’t over yet.
In overnight trade, the January 2017 iron ore future on the Dalian Commodities Exchange jumped by a further 1.47% to 482 yuan.
Rebar futures traded on the Shanghai Futures Exchange also recovered, rising 0.43% to 2,557 yuan.
Elsewhere coke futures rose by a further 0.5%, continuing to rally in lockstep with iron ore, while coking coal bucked the trend, falling 0.47%.
Trade in Chinese Commodity futures will resume at midday AEDT.