Caught between slowing Chinese demand and relentless production growth 2016 was supposed to be bring more pain for the iron ore industry, which has seen prices tumble since peaking at nearly $200 a tonne five years ago. So far things haven’t played out that way.

Instead of sinking to $30 a tonne as many analysts had predicted, the steelmaking commodity has surged in value. Boosted by rising Chinese steel prices and supply disruptions in Australia and Brazil, it has gained more than 50 per cent this year and hit a 15-month high of $68.70 a tonne on Thursday.

If sustained the rebound, which has made iron ore the top performing major commodity of 2016, could add billions of dollars to the bottom line of big producers such as BHP Billiton, Rio Tintoand Vale.