Iron ore spot markets fell heavily on Wednesday, continuing the choppy price action that has been a feature in recent weeks.
According to Metal Bulletin, the price for benchmark 62% fines fell by 2% to $76.82 a tonne, leaving it at one week low. It has fallen, risen, fallen, risen and fallen in the past five sessions without really going anywhere.
The weakness in the benchmark price was replicated across the grades.
The price for 58% fines fell by 1.9% to $48.16 a tonne while ore with 65% Fe content slid 2.2% to $99.40 a tonne.
It also followed a late plunge in Chinese rebar and iron ore futures during Wednesday’s day session, something that may have been fueled by speculators taking profits after recent strong gains.
“Trade in the physical market is flat and speculation is cooling down,” said a CITIC Futures analyst in a note seen by Reuters. “Prices are under pressure to pull back.”
The January 2018 iron ore contract in Dalian slumped 3.68% to 550 yuan while rebar futures in Shanghai lost 2.5% to 3,986 yuan.
And, as seen in the final scoreboard from Wednesday’s night session, those losses were largely maintained during overnight trade.
SHFE Rebar ¥3,985 , -1.73%
DCE Iron Ore ¥554.00 , -2.29%
DCE Coking Coal ¥1,395.50 , -1.10%
DCE Coke ¥2,348.00 , 0.64%
Trade in Chinese commodity futures will resume at 11am AEST.