It’s another giddy day for the steel bulls, as domestic prices for iron ore futures charge to new highs not seen for more than five years.

Domestic contracts for iron ore due in September were up about 2% on the commodities trading market in Dalian in morning trade, extending a 5% gain from the previous day. At their current levels of about 900 yuan ($131) per ton, prices haven’t been this high since early 2014.

Iron ore prices have had a rough time over the last five years due to weak demand, as China cleaned up its bloated steel sector through consolidation and mass elimination of excess capacity. With that cleanup largely in the rear view mirror and recently rising prices for finished steel, and also the elimination of supply due to an accident in Brazil last year, ore prices have nearly doubled since late last year.

Contact reporter Yang Ge (geyang@caicin.com)