The price of iron ore has been in freefall since April. Since May, the price has only rallied on four days of trade.
Last night was one of those days, with iron ore futures for September delivery rising 87 cents to $93.25.
But one day’s bounce does not a rally make and the SMH reports this morning that Grange Resources managing director Wayne Bould said that “discretionary spending such as training programs, external consulting and equipment upgrades should all be deferred.”
No doubt it’s the same across the industry as miners await the sight of a sustainable bottom in the iron ore price and some greater certainty on the outlook. Bould told the SMH:
When we see the numbers take a dive as they have and you don’t see any clear bottom then a prudent CEO would implement a pretty straightforward plan to curtail any optimistic activity and lock down.
You can read more here