CHART OF THE DAY: Iron ore has crashed again

Iron ore. Image: Atlas Iron.

Iron ore has made another new low for this cycle with June 62% Fe, CFR China (TSI) Swap Futures dropping $1.53 a tonne to $51.83 on Friday.

That’s the lowest level since the depths of the GFC.

index mundi – iron ore

The enduring price fall has already cost Fortescue Metals the chance to issue debt, with not enough buyers for its US $2.5 billion bonds which were were pulled from sale last week.

It’s also important because even with the current record volumes of iron ore being shipped through Port Hedland, the crash in the prices will impact Federal Government revenues.

This is likely to put further downward pressure on the budget deficit this year and next.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at