Despite another hefty decline in Chinese futures on Wednesday, the spot iron ore price rebounded strongly overnight.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by 77 cents, or 1.69%, to $46.35 a tonne.
The gain, recovering around half of Tuesday’s loss, came despite another 2.5% plunge in Dalian iron ore futures and news that Chinese crude steel output continued to contract in late October.
“CISA have announced that China’s crude steel output retreated in late October, after continuous increases since mid-September,” wrote analysts at Metal Bulletin.
“CISA member mills produced crude steel at an average daily rate of 1.74 million tonnes during the last eleven days of October, down 3.6% from the preceding period.”
In overnight trade Dalian futures retreated by 0.74% to 334.5 yuan, a fresh record low. If maintained during today’s day session, beginning at 12pm AEDT, it points to further pressure on the spot price arriving later on this evening.
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