Iron Ore Ready To Show Its Strength In The Bull Run

  • Oct 26, 2018 AEDT
  • Team Kalkine
Iron Ore Ready To Show Its Strength In The Bull Run

Climbing 20.4% from July 5, 2018, the benchmark iron ore prices have entered a bull run. Modest losses were recorded in higher and lower grades, while the benchmark price surged on Thursday. All grades remain close to multi-month or multi-year highs, despite the mixed performance. Hinting that spot markets are likely to start on a stronger footing, Chinese steel, and bulk commodity futures rose in overnight trade on Friday.

On Thursday, as the benchmark price continued to surge Iron ore entered a technical bull market. The price jumped 1.8% to $76.04 a ton for 62% fines, according to Metal Bulletin, extending its gain to 20.4% from July 5, above the 20% threshold defined as a bull market.    

Since the end of Golden Week holidays, it has rallied nearly 10% in early October and since early March this year sits at the highest level. The current price trajectory is almost U-shaped, as has been seen on occasions before. In lower and higher grades which weakened during the session, that move was not reflected despite a strong gain in the benchmark.

The price for 58% fines dipped 1.2% to $44.74 a ton, after surging into a bull market of its own a day earlier. With the price of 65% fines slipping 0.2% to $98 a ton, higher grades, were also a bit softer. DCE Iron ore is hitting at Yuan 534.00 with a 0.38% change.

Mining and Energy Commodities Analyst at the Commonwealth bank, Vivek Dhar said ‘As policymakers look to reduce pollution during the winter season, prices lifted as steel prices gained on impending cuts to steel output in China’. To either conduct environmental inspections in the coming months or cut industrial output, a lot of Chinese provinces and cities detailed their clear plans. It briefly rose to the highest level in over a month to 4,209 yuan.

The state planner approved 45 projects worth 437.4 billion yuan in July-September 2018, which so far this year accounted for nearly two-thirds of the value of approvals.

Over environmental restrictions on coal and coke output, because of a combination of temporary supply disruptions and speculation prices, have been supported this week. Iron ore futures in Dalian slipped ending the trade at 533 Yuan, the gains were once again led by steel contracts steel contracts, to support bulk commodity prices in the past, a factor which has often acted.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK