Iron ore prices have hit a five-year high, reaching $US110 ($159.2) per tonne as the mining industry responds to supply disruptions from Brazil.
The price has risen by nearly 50 per cent since January and over eight per cent in this June.
SP Global reported the breakthrough of $USD110, which is the highest iron ore price seen since April 2014 and comes as a flow on effect from supply disruptions from top exporters in Brazil such as Vale.
Global iron ore supply is still recovering from Vale’s tailings disaster, which became a catalyst for a global deficit in the commodity.
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Australia’s iron ore majors have continued to surge off the back of higher prices, with Fortescue Metals Group share price increasing 3.4 per cent overnight to $8.63. The company is up 85 per cent this year.
Rio Tinto share prices also saw a 1.8 per cent rise to $103.7, representing a 22.54 per cent share price growth this year.
BHP shares saw 1.3 per cent growth to $40.1, with the company up over 20 per cent this year too.