Iron ore has been in free-fall lately and claimed its most high profile casualty yesterday with the collapse of Western Desert Resources.
But as is often the way with markets, when the doomsayers hit their crescendo, prices often do the opposite and rally.
Last night was a case in point with September 62% Fe iron ore futures up 82 cents to $84.66 a tonne. December futures rose 92 cents to $84.00.
It’s the first rally in prices in over a week and many analysts are now expecting a move below $80 a tonne. So like the first swallow, there is no guarantee that sunshine and summer is on the way.
But Atlas Iron, BC Iron, Arrium and others will be hoping that the relentless push lower has finally brought some buyers to the table.