Iron ore price rallies on China fundamentals, but cap looms

By: Admin

LAUNCESTON, Australia, Sept 14 (Reuters) - The spot price of iron ore has climbed to a five-month high amid improving sentiment and some supportive fundamentals in China, the world's top buyer of the steel raw material.

However, there are also some factors that may limit the extent of the rally in coming weeks, such as the likely official moves to ensure steel production this year doesn't exceed that of last year.

Iron ore futures traded in Singapore ended at $121.13 a metric ton on Wednesday, the highest since April 11 and up 17.4% from the recent low of $103.21 on Aug. 3.