Iron ore and coal prices on a key Chinese futures market have surged again as traders take a bet on demand building well into next year. Key points:
Iron ore futures up 6 per cent today to $US90.20 a tonne
Indicates traders believe prices will be higher in three-to-six months
Impact of Trump administration "uncertain" in long term given steel self-sufficiency plans
In morning trade, Dalian iron ore futures jumped another 6 per cent to $US90.20 a tonne (614.50 yuan/tonne), while coking coal futures were up 2 per cent to $81.30/tonne - a rise of 10 per cent in just the past five days.
Iron ore futures are now trading at a 16 per cent premium to the spot Chinese Steel Index price which hit $US74.20 yesterday.
Spot prices have jumped more than 35 per cent in the past month alone.
GBG Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
