Benchmark global iron ore prices have topped $US95 a tonne for the first time in more than five years.
That was after Chinese iron ore futures on Monday, jumped to their highest level since trade first began on the Dalian Commodities Exchange in 2013.
The Metal Bulletin’s 62% Fe Iron Ore Index jumped above $US95 a tonne (CFR Northern China) following the surge on the commodities market in China which were closed last Friday for a public holiday.
The MB 62% index hit $US95.30 a tonne, up 2.5% or $US2.40 per tonne.
The Metal Bulletin said the price of the lowest quality ore traded globally – the 58% iron oxide product that is Fortescue Metals main product – jumped to $US85.21 a tonne – up $US2.37 a tonne or 2.8% and where the 62% ore price was early last week.
Higher steel prices inside China, better weather (which helps demand from the building and construction sectors) and continuing expectations of government stimulus have added to the pressures caused by the shortfalls in iron ore production and exports from Brazil (because of the fallout from the January 25 mine collapse disaster) and Australia where BHP and Rio have said their 2019 exports will be more than 20 million tonnes under previous forecasts).
