Even after the surge in the share prices of Australia’s big iron ore miners on Thursday, there’s still a real question as to whether the market is properly pricing in the ongoing strength in iron ore prices.

BHP shares surged 4.9 per cent, Rio Tinto rose 6.9 per cent and Fortescue Metals Group surged a spectacular 13.3 per cent to a new record high of $20.65 after news broke on Thursday night that Brazilian iron ore giant Vale once again downgraded its targets for production in calendar 2020, this time from between 310 million and 330 million tonnes to between 300 million and 305 million tonnes.