Iron ore is getting smoked on China’s Dalian Mercantile exchange today.
At the moment, the most active September futures are down 3.97%, 15 points to 380, on massive daily volume of more than 1.3 million contracts.
Iron ore’s relentless fall has many perplexed. That’s especially the case given that Chinese authorities have, just this week, specifically targeted housing and construction as areas to receive support.
But nothing appears able to stop the iron ore slide as Business Insider pointed out this morning.
It seems there are other forces at work: high supply, and other downward cost pressures including fuel and currency.