Proactive Investors reported that iron ore miners appear set for a sustained bull run as iron ore prices resurge after declining five straight months on the back of strong Chinese growth and falling inventories.
Fortescue Metals Group was the first to acknowledge the upswing,saying it would dust off its Kings deposit next month as prices stabilize.
Benchmark prices for iron ore landed in China last week raced to a 5 month high of US135.50 a dry tonne,up 56%from a low of US87 a ton in early September even though prices are down on a YoY basis.
Analysts said that the macro economic sentiment in China,which is forecast to grow 8%this year,coupled with low inventories and lacklustre domestic production from Chinese mines were supporting prices.
Iron ore inventories in China were at two year lows as higher demand pushed up prices.Stockpiles at China's major ports dropped 3.3%to 71.32 million metric tonne as of 21 December 2012.
Chinese customs data said that ore imports reached 65.78 million tonne in November,the second highest level after a record 68.97 million tonne was imported in January 2011.
