The Rio Tinto Limited (ASX: RIO) share price hit a multi-year high of $93.50 this morning on the back of a surging iron ore price closed at US$88.56 (A$124) a tonne last week. Traders are also betting that the iron ore price will soon print its own 52-week highs on optimism that the US and China may agree a trade deal before a March 1 deadline set by US President Trump.
The A$124 per tonne iron ore price is starting to revert to the boom times of 2008-2013 when Chinese demand for the core steel-making ingredient surged on the back of its once-in-a-generation construction super cycle. In May 2008 not long before the GFC hit global markets the Rio Tinto share price stood above $146 as iron ore prices also surged.
Today, the BHP Billiton (ASX: BHP) share price is also at a 52-week high of $37.12 today, with the likes of Fortescue Metals Group Limited (ASX: FMG) also hitting a multi-year high of $6.44.
This is great news for investors today, but the unpredictability of iron ore prices remains a thorn in the side of mining investors.
