Chinese iron ore futures are ripping higher this afternoon

Chinese iron ore futures are flying this afternoon.

The January contract on the Dalian commodities exchange, having been up slightly more that 1.5% for most of Monday’s session, has suddenly leapt by 14 yuan to 364.5 in recent trade.

At 3.99%, the contract is now “limit up”, meaning it cannot rise further for the session.

Should the gain in Dalian be maintained this afternoon the spot price could experience a hefty increase later on this evening.

On Thursday the price for 62% iron ore fines rose 11c to $50.66 a tonne according to Metal Bulletin’s iron ore index. On Friday there was no spot price set due to a public holiday in Singapore.

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