Iron ore rallies beyond $US60 a tonne

Iron ore prices have surged through the $US60 a tonne mark after advancing significantly for the second straight day.

The steel-making material was 4.4 per cent higher in overnight trading, finishing the session at $US62.33 a tonne.

In the previous session, iron ore increased by 5.2 per cent in what was the largest one-day gain since February.

Iron ore remains more than 20 per cent lower than where it started 2017, which has been an up-and-down year for the commodity.

A Patersons Securities note explained: “The Qingdao 62 per cent content fines prices ended Wednesday Chinese markets above $US60/tonne, reportedly fuelled by signs that steel output was holding up well.”

Iron ore miners Rio Tinto and BHP have performed strongly on the Australian Securities Exchange (ASX) because of the improvement in prices.

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