May was terrible for iron ore prices, finishing the month with yet another decline.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by 0.23% to $50.15 a tonne on Tuesday, ending the month down an enormous 24.3%.
The sharp unwind has seen the year to date gain slide to 15.1%.
Suggesting that the declines will extend into June, and potentially see the spot price move below $50 on Wednesday, Chinese iron ore futures were hit hard in overnight trade, slumping 1.44%.
Trade will resume at 11am AEST, just as Chinese manufacturing and steel industry purchasing managers’ indices (PMIs) for May will be released.
The strength of these reports, particularly the latter, will be highly influential on movements in futures markets, and as a consequence of the relationship between the two, price changes in the physical spot market.