Iron ore has been slammed

Photo by Don Arnold/WireImage

Spot iron ore markets reopened after a long weekend in Singapore and were subsequently slammed on Tuesday.

According to Metal Bulletin, the spot price for benchmark 62% fines tumbled 2.92% to $56.09 a tonne, leaving it at the lowest level seen since July 22.

It was the sixth consecutive fall in a row, taking the decline from September 2 to 5.56%. Year to date it has gained 28.7%.

Mirroring the movements in spot markets, Chinese iron ore futures continued to weaken overnight, finishing trade at the lowest level seen since June 27.

The January 2017 contract in Dalian closed down 0.63% at 392.5 yuan. Trade in Dalian will resume at 11am AEST.

The losses in iron ore — both spot and futures markets — came despite the release of bullish steel production figures from China on Tuesday.

According to China’s National Bureau of Statistics, crude steel output rose by 3% year-on-year to 68.57 million tonnes in August, marking the fastest increase in percentage terms since June last year.

It also saw output levels over the first eight months of the year rise to 536.3 million tonnes, down a minuscule 0.1% on the same period a year earlier.

That was no mean feat given great swathes of industry, including steel mills, were forced to shutter or limit production before a meeting of G20 leaders in the Chinese city of Hangzhou that began in late August.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.