Iron ore is back below $60 a tonne

Photo by Ryan Pierse/Getty Images

Iron ore is back below $60 a tonne.

According to Metal Bulletin, the spot price for benchmark 62% fines fell by a further 2% to $59.36 on Thursday, extending its slide over the past two sessions to 3.6%. It now sits at a two week low.

Year to date, however, it’s still put on a handy 36.2%.

Perhaps contributing to recent strength in steel prices, Metal Bulletin notes that Chinese steel production slowed in the second half of July.

“Member mills of the China Iron and Steel Association produced crude steel at an average rate of 1.621 million tonnes per day during the last eleven days of July, down 4.1% from mid-July,” it said, citing data released by CISA.

Production curbs in the key steel making city of Tangshan may have contributed to the deceleration in output levels.

Providing no indication on whether the decline in the spot iron ore price will continue on Friday, Chinese futures went nowhere in overnight trade.

The September 2016 iron ore future on the Dalian Commodity Exchange finished the session at 487.5 yuan, an increase of 0.21%.

At midday in Sydney (10am in Beijing) Chinese industrial production and urban fixed asset investment figures for July will be released, with its performance likely to be influential on Chinese bulk commodity futures.

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