Iron ore has continued to rally amid reports over lower Chinese stockpiles. Iron ore for immediate delivery in the port of Tianjin rose for the eight consecutive session to $65.40 a tonne.
“There’s not much cargo being offered by traders at the moment, particularly the mainstream grades being sought by mills,” an iron ore trader in Shanghai explained to a Reuters reporter.
Futures on the Dalian Commodity Exchange were also up, prices have been buoyed by an increase in demand for seaborne iron ore.
London listed miners Rio Tinto and Anglo American traded higher in tandem with iron ore. Rio Tinto has secured a cost of production around $16 a tonne, CEO Sam Walsh will be more than happy with the recent rally but has previously said Rio Tinto are able to deliver shareholder returns even at lower levels.
Iron ore has rallied over 30% from lows seen in April but some analysts still remain cautious on the outlook for iron ore prices.
