06-29-2017, 07:57 AM
Iron ore spot markets exploded higher on Tuesday, logging the largest one-day gain in over four months. And with Chinese futures holding much of its earlier session gains overnight, it suggests the bounce may well continue on Wednesday. According to Metal Bulletin, the spot price for benchmark 62% fines soared 5.2% to $59.70 a tonne, marking its largest one-day percentage increase since February 13 this year. The benchmark has now gained in eight of the past nine sessions, adding 11.9% in the process. Making the gains all the more remarkable, the surge in buying interest followed news that Chinese iron ore port inventories rose to a record high of 141.45 million tonnes last week, according to data from Shanghai Steelhome. The gains in spot markets followed renewed strength in Chinese futures earlier in the session.