Just as the world thought the price of iron ore had crashed and burned, never to recover, it bounces back in a record recovery. Is there a lesson here?

"Iron ore prices skyrocketed Thursday to above $70 a tonne, hitting their highest level since January 2015."

"The spot price for benchmark 62% fines gained 8.78%, or $5.69, to $70.46 a tonne, extending this year’s gain to 61.7%, according to data from the Metal Bulletin."

mining.com

Call that 61.7 percent in 15 weeks, so that translates to an annualized gain of 214 percent should it be sustained. What's going on here? I'm not sure I'm prepared to answer that, but it's an important question, because moves like this do not happen in isolation. Related sectors are always sucked into movements like this (up or down) because these sectors are so interrelated. As examples, look at the direction of gas, oil, coal, and uranium prices in the last year - down together. Look, too, at the recovery of metals prices in general, though iron is performing like a run-a-way train. Wow!

VP in AZ