Atlas Iron and Arrium were amongst the ASX’s biggest losers on Friday, down 8.03% and 4.07% respectively. BC Iron had lost almost 5% the day before and Fortescue had three days of losses over 1.3% to end the week, even with solid results being reported.
Part of the weakness appears to have been the re-acceleration in the pace of the fall in iron ore which dropped $3.6388% over the course of the week ending last Friday with the September 62% Fe contract at $90 a tonne. That’s now just $1.37 above the low for this year.
From a market psychology point of view, this level needs to hold because as we have highlighted previously, the recent rally hardly registers on the long-term decline of iron ore from the highs.
Traders say respect the level until it breaks – but traders of iron ore and Australians miners will be watching closely this week.