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.