Iron ore’s first foray above the $80 a tonne level in 26 months was a short one.
It was hammered on Tuesday, and it looks like it’s going to be an equally ugly day on Wednesday.
Following a shellacking in futures markets earlier in the session, the spot price for benchmark 62% fines tumbled 4.4% to $77.30 a tonne, according to Metal Bulletin, snapping a five day, 15% rally in the process.
A sharp reversal in iron ore and rebar futures, having started the session significantly higher, appears to have been driven by renewed attempts from market regulators to crimp swirling levels of speculation that have become more prominent in recent weeks.
It seems to have worked.
Not only did futures get crunched on Tuesday, they were also hammered overnight.
Just take a look at the final scoreboard:
- SHFE Copper ¥46,550 , -3.76%
- SHFE Aluminium ¥13,390 , -2.62%
- SHFE Zinc ¥22,675 , -6.65%
- SHFE Nickel ¥92,990 , -3.95%
- SHFE Rebar ¥3,018 , -6.45%
- DCE Iron Ore ¥559.50 , -7.37%
- DCE Coking Coal ¥1,310.50 , -6.96%
- DCE Coke ¥1,789.50 , -8.18%
Iron ore slumped 7.4%, mirroring similarly large declines in rebar, coking coal and coke futures.
That sets up another ugly session for spot markets on Tuesday, presuming that the declines are maintained or built upon when trade resumes at Midday AEDT.