Global iron ore prices continued their 2019 surge on Monday, jumping to the highest level for more than five years.
The price of 62% Fe ore surged to $US123.65 a tonne, according to the Metal Bulletin, a rise of 4.3% on the day.
That’s the highest price iron ore has been since April 2014.
That compares to the end of December price of $US72.73, meaning the price has surged 70% in the first six months and a day of 2019.
The gap between the 62% Fe ore and the 58% product sold by Fortescue and some of the other shippers has widened slightly.
The Metal Bulletin said 58% ore saw a rise of $US4.56 to $US113.67, a rise of 4%. That’s a $US10 a tonne gap compared to just over $US9 on Friday.
The price of the 65 Fe ore (shipped mostly by Vale of Brazil) rose a modest $US3.40 a tonne to $US131.50.
The gap between that price and 62% ore has narrowed over the past month as Chinese mills (with tightening profit margins) step up their purchases of lower (3% to 5%) ores from Vale and BHP and Rio Tinto.
