Iron ore prices have reached a five-year high, breaking through the $US110 ($159.2) mark as the industry continues to respond to supply disruptions from Brazil.
The price of the steel-making commodity has now risen nearly 50 per cent since January and over eight per cent in this month alone.
SP Global reported the breakthrough of $USD110, which is the highest iron ore price seen since April 2014 and comes as a flow on effect from supply disruptions from top exporters in Brazil such as Vale.
Global iron ore supply is still in the midst of recovering from Vale’s tailings disaster, which became a catalyst for a global deficit in the commodity.
Australia’s iron ore majors have continued to surge off the back of higher prices of the commodity, with Fortescue Metals Group share price increasing 3.4 per cent overnight to $8.63.
The company is now up over 85 per cent this year and is thriving alongside other giants of the industry.
Rio Tinto enjoyed a 1.8 per cent rise to $103.7, representing a 22.54 per cent share price growth this year.
BHP were also up 1.3 per cent overnight to $40.1, with the company up over 20 per cent this year too.