As it had done in seven of the past eight trading sessions, the spot iron ore price has fallen overnight.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by 30 cents, of 0.6%, to $49.65 a tonne. Metal Bulletin note that there have been only 14 occasions since spot pricing first began in 2008 that the benchmark price has settled below the $50 a tonne level. Lower grade ore also declined, with 58% fines slipping 26 cents to $43.36 a tonne.
While spot prices weakened yet again overnight, it was a different story for Chinese iron ore futures which rallied by close to 2%. According to the Dalian Commodities Exchange, the most actively traded January 2016 contract closed up 1.82% at 363.5 yuan.
If sustained during Friday’s day session, beginning at 12pm AEDT, it points to the likelihood of a strong bounce in spot prices this evening.