Iron ore price surges back above $US90 a tonne    

20 Mar 2017

The iron ore price has shot back above $US90 a tonne overnight after a lacklustre trading period following the Chinese New Year holiday. According to The Steel Index, the price of iron ore for immediate delivery to the Port of Tianjin surged 4.2 per cent to $92.10 a tonne, up from $US88.40 in the prior session.

The level serves as a three-week high and the first time the key Australian export has crossed the $US90 a tonne threshold in a fortnight.

News of the gains boosted BHP and Rio Tinto shares by around 1 per cent overnight in London trade, with stronger gains expected in local deals today given the more dovish than expected outcome of a US Federal Reserve meeting this morning.

Strength in the commodity came prior to the Fed meeting, which threatens to put a further rocket under commodity prices in coming weeks. However, analysts remain cautious on the prospects for iron ore through the remainder of 2017 given the planned uptick in supply from the majors as well as a potential lift from juniors looking to cash in on the higher prices.

Source : The Australian