Iron ore price surges past $US55 a tonne

The price of iron ore has risen for a second day, surging on rising oil prices and hopes for stimulus out of Beijing.

An iron ore loading port is seen in Rizhao, east China's Shandong province.

Iron ore has surged over 3 per cent despite persistent worries about the Chinese economy, with investors eyeing a buying opportunity after a more than 20 per cent correction from April’s high.

The commodity closed the latest session up 3.4 per cent, or $US1.90, to $US55.70.

The positive session was the key Australian export’s second consecutive day of gains after a run of seven red days in eight.

Iron ore received a further boost from crude oil prices, which rose to a seven-month high overnight, while talk of more Chinese stimulus after lacklustre data were released over the weekend has also aided the price.

The recent upturn is a welcome development for the government after the budget put forward a projection of $US55 a tonne.

However, Treasury forecasts may be revised this week as the Pre-Election Economic and Fiscal Outlook is released.

The assumed price of $US55 a tonne over the next four years was a significant upgrade on the $US39 figure tagged in the midyear outlook in December.