Iron ore falls again, but there's a glimmer of hope


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.

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