Iron ore has taken a tumble

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Iron ore prices tumbled on Thursday, continuing to retrace the enormous gains last week.

The spot price for benchmark 62% fines fell by 1.54% to $55.07 a tonne, according to Metal Bulletin, trimming the year to date gain to 26.4%.

There was no obvious reason to explain the weakness with Chinese rebar prices — which the iron ore physical market tends to track nowadays — trading mixed across the country on Thursday.

Whatever the reason for the decline, it looks like the losses will extend on Friday, at least based off movements in Chinese iron ore futures overnight.

The most actively traded September 2016 contract finished at 424 yuan, down 1.05% for the session. Trade in Dalian will resume at 11am AEST.

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