Iron ore pushes $US118

The price of iron ore rebounded further overnight.

The price of iron ore has extended its rebound overnight, rallying past the price it was trading at before posting its sharpest one-day drop in four years just over a fortnight ago.

Benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US117.60 a tonne, a lift on the $US116.80 price in the previous session.

In the previous session, iron ore posted its biggest one-day rise in nine months, and now looks set to push $US118 a tonne.

Earlier this month, the price of iron ore charted its largest one-day price fall in more than four years on persistent fears over China's economy, dropping to as low as $US104.70 a tonne after closing out the previous week at $US114.20 a tonne.

Some analysts have cut growth forecasts for China, and predicted iron ore prices will sink to around $US80 to $US90 per tonne over the next few years.

Investors were watching the release of Chinese manufacturing numbers yesterday, but appear unfazed by a HSBC read that showed activity in China's manufacturing sector slowed for the third straight month in March.