Following a 2% decline in overnight trade on Friday, the carnage in iron ore futures has intensified today.
The most-actively traded September iron ore futures contract on the Dalian commodities exchange has fallen a further 16 yuan, or 3.9%, to 394.5 yuan in early Monday trade.
The Dalian exchange limits the maximum daily movement in the contract, either up or down, to 4%.
On Friday the spot price for 62% fines fell a further 0.67% to $55.26 a tonne, according to Metal Bulletin’s iron ore index. Separate pricing from the Steel Index, that seen in Tianjin, put the loss at 3.0%, taking the spot price down to $54.10 a tonne.
Here’s a 12-month chart for the spot price of 62% fines, courtesy of the Steel Index.
It appears that further steep losses in the spot price will arrive this evening should the decline in futures be maintained.