The iron ore price has been under pressure for more than a year now but rather than finding a base, it seems the fall has accelerated over the Australia Day weekend.
At $US61.73 a tonne the March 62% Fe, CFR China futures contract is more than $US4 down on last Friday morning’s close — a loss of more than 6%.
A price of $US60 a tonne was assumed in the government’s MYEFO forecasts for the next two years, so this renewed weakness shouldn’t materially impact on Australia’s fiscal position.
But for Australia’s iron ore miners, it could be another bad day’s trade.
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