Global iron ore prices continued their surge on Wednesday jumping another 3.7% to more than $US105 a tonne – another five year plus high.
The Metal Bulletin 62% Fe index was up $US3.75 a tonne to $US105.78 a tonne.
The Index for 58% fe ore (the basic product produced by Fortescue Metals rose more than 2.4% to $US95.20 a tonne, while the 65Fe index (the typical Brazilian product from Vale) rose $US2.50 a tonne $US119.20.
Analysts at US investment bank, Goldman Sachs reckons price are at current highs for a while longer, but will soften.
“Going forward, we expect demand to soften while supply to partially recover,” Goldman wrote. “The $100/ton iron price, while justified for May and June, also reflects a market that is at peak tightness.”