The spot iron ore price made it three gains in a row overnight, rising strongly during Monday trade.

According to Metal Bulletin, the spot price for benchmark 62% fines rose by 60 cents, or 1.07%, to $56.61 a tonne. Since Chinese markets resumed trade on October 8 following the golden week holiday, the price has rallied by an impressive 6.5%.

While the benchmark price continued to push higher, lower grade ore was largely unchanged, with the spot price for 58% fines rising by one solitary cent to $48.76 a tonne.

Despite the renewed uplift in prices, analysts at Metal Bulletin believe prices remain range-bound.

“The seaborne iron ore market saw a small rise at the start of the week, but remains range-bound in the mid-fifties. In fact the MBIOI-62 has fluctuated between a $4/t range between $53 and $57 for over two weeks, and on a longer scale the last time the 62% Fe price was outside the $50-60 range was July 9,” analysts said.

In a sign the recent rally may come to an end later this evening, Chinese iron ore futures fell heavily in overnight trade, with the most actively traded contract on the Dalian Commodities Exchange slipping 1.83% to 376 yuan.

If sustained during today’s day session it points to the likelihood of a decline in the spot price this evening. Trade in Dalian will resume at 12pm AEDT.