Having confounded the experts by hitting record prices last May before tumbling unexpectedly fast to under $US100 a tonne, iron ore is taking the pundits again by surprise with a new run that now has it back near $US150/t.
The renewed optimism had the big Pilbara miners enjoying good gains on Tuesday, with BHP, Rio Tinto and Fortescue Metals Group up between 3 per cent and 3.6 per cent as at midday.
The sentiment was driven by signals about increased infrastructure spending in China and upgraded price forecasts from analysts.
JP Morgan said it had lifted its forecast 2022 average price for iron ore to $US114/t from $US92/t previously. The global investment bank remains more bearish than others who are tipping more than $US130/t.
