Iron ore is at a 10-week high.

According to Metal Bulletin, the spot price for benchmark 62% fines rose 0.5% to $68.13 a tonne, leaving it the highest level since October 20.

It’s now risen in six of the past seven trading sessions, extending its rally from late October to 16.4%.

The strength in the benchmark was mirrored across the grades.

Ore with 65% Fe content rose 1% to $84.70 a tonne, outpaced by a 2.9% surge in the price of 58% fines which settled at $38.91 a tonne.

The move in spot markets followed another surge in Chinese rebar futures on Thursday, continuing the pattern seen earlier in the week.

The most actively traded May 2018 contract in Shanghai jumped 2.3% to 3,990 yuan, leaving it at the highest level since mid-September.

That helped to spur on gains in iron ore futures in Dalian which added 3%, closing Thursday’s day session at 520 yuan.

Sentiment was also helped by a stronger-than-expected China manufacturing PMI report for November which rose to 51.8, topping forecasts for a decline to 51.4.

That was an improvement on the 51.6 level of October, indicating that activity levels improved at a faster rate last month.

As can be seen in the scoreboard below, both rebar and iron ore futures extended those gains in overnight trade.

SHFE Rebar ¥3,995 , -0.05%
DCE Iron Ore ¥522.50 , 1.26%
DCE Coking Coal ¥1,392.50 , 1.61%
DCE Coke ¥2,165.50 , 1.76%

Chinese commodity futures will resume trade at midday AEDT.

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