Although the market has had a subdued start to the week, that hasn't stopped Australia's leading iron ore producers from storming higher this morning.
In morning trade the iron ore industry has been one of the best performing areas of the market thanks to yet another rise in the price of the base metal.
Here's the state of play at the time of writing:
- The BHP Group Ltd (ASX: BHP) share price is up 1.5% to $38.00.
- The Fortescue Metals Group Limited (ASX: FMG) share price has pushed 1.6% higher to $8.35.
- The Mount Gibson Iron Limited (ASX: MGX) share price has climbed 2.5% to $1.28.
- The Rio Tinto Limited (ASX: RIO) share price is 1.5% higher to $102.76.
What happened with iron ore prices?
Iron ore prices continued their rise on Friday and closed in on five-year highs.
According to Metal Bulletin, the price of the benchmark 62% fines rose 1.5% to US$105.32 a tonne, leaving it trading within a whisker of its five-year high of US$105.78 a tonne.
Gains were also made by both lower and higher grade ore. The price of the lower grade 58% fines rose 0.3% to finish the week at US$87.02 a tonne, whereas the higher grade 65% fines closed the week with a 0.7% gain to US$119.30 a tonne.
What's next for iron ore prices?
The good news for shareholders of these miners is that all signs are pointing to further gains today after Chinese iron ore futures finished the week on a very strong note.
In fact, futures contracts closed the week at a record high thanks to increasing demand from Chinese steel producers after a production ramp up and declines in stockpiles at Chinese ports.
If this leads to further increases in iron ore prices this week, it wouldn't be at all surprising to see the likes of BHP, Fortescue, and Rio Tinto continue their charge higher.
