Another stunning rally in iron ore prices is set to put a rocket under profits for the major iron ore producers, showering shareholders with dividends, shoring up the sharemarket and helping the government restore its pandemic-ravaged finances.

Last week, the spot iron ore price reached $US172.36 a tonne, up 1.3 per cent on the previous session according to Fastmarkets MB. Iron ore futures on the Singapore exchange traded at $US170.15 a tonne at the end of the week – the highest since their inception in 2013 – after rallying nearly 10 per cent since the start of the year.