The benchmark price of 62 per cent iron ore hit its highest levels since September 2014 on Friday, lifting $US2.78 to $US86.62 a tonne, defying predictions that high stockpile levels at Chinese ports meant prices would tumble after Chinese New Year celebrations ended.

A month ago, when iron ore was worth $US77.73/t, the median price of analyst consensus on Bloomberg tipped the price to average only $US60/t in the first quarter — suggesting big falls were on the way.

Since then the iron ore price has lifted another 11.5 per cent, and has not dipped below US80/t since January 11.

Bloomberg consensus estimates for the current quarter sit at $US72/t, with Westpac analysts suggesting the price could average $US80/t for the period.
Although volatile, contracts traded on the Dalian futures exchange suggest a longer bull run.

The value of active contracts deliverable in May has surged to $US97/t.