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.
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.