According to Mining News Pro - Iron ore prices hit another five-year high this week, with the benchmark 62 per cent iron content (Fe) rising over three per cent to $US108.62 ($156.9) a tonne.

The price rise can partly be explained by the drop in Chinese iron ore stockpiles last week to 128 million tonnes, which coincides with a global supply shortage of the commodity.

Supply is also still struggling after the Vale tailings accident in Brazil and is affecting iron ore prices at all levels.

The Metal Bulletin index for 65 per cent Fe recorded a $US4 a tonne rise reaching $US123.40, with the share prices of Australian miners responding strongly.

Rio Tinto shares closed at an 11-year high of $105.30 overnight, representing a 2.2 per cent rise in just one day – the company’s highest price since May 2008.

BHP also enjoyed a one-day price increase of 1.75 per cent to $38.60 as the company continues its strong performance this year, having risen 19.58 per cent since the beginning of 2019.

While Fortescue Metals Group only rose 0.12 per cent to $8.46, it still stands as one of the strongest performing iron ore giants in the industry, with a 84.31 per cent increase since the start of the year.