Iron ore’s two-session rally came to a spectacular end overnight with the price tumbling more than 1.5%.
According to Metal Bulletin, the spot price for benchmark 62% fines slumped 77 cents, or 1.59%, to $47.81 a tonne. It has now fallen 15.5% over the past month, extending this years decline to 33%.
The benchmark price is now sitting at lows not seen since July 8, the day the spot price collapsed to $44.59 a tonne, the lowest level on record.
While the spot price weakened sharply, there was an indication that it may not last with Chinese iron ore futures rising modestly overnight.
The most actively traded January 2016 contract on the Dalian Commodities Exchange rose 0.58% to 348 yuan during the overnight session.
If maintained during today’s day session, beginning at 12pm AEDT, it suggests there may be a small increase in spot prices this evening.
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