Volatility in the spot iron ore price continued on Friday, this time to the downside.
After snapping a six session losing streak on Thursday, jumping more than 2.5%, that gain was almost entirely reversed on Friday with the spot price for benchmark 62% fines tumbling 2.27% to $55.87, according to Metal Bulletin.
For the week the benchmark spot price lost 4.4%, trimming its year to date gain to 28.2%.
Analysts at Metal Bulletin note that the weekly decline corresponded with weakness in rebar prices, along with “very limited” transaction volumes.
Suggesting that the slide in the spot market may continue on Monday, Dalian iron ore futures slid by 2.17% in overnight trade, extending the losses seen during Friday’s day session.
The most actively traded September 2016 contract in Dalian slumped 2.17%, closing Friday’s overnight session at 428.5 yuan.
Trade in Chinese commodity futures will resume at 11am AEST.