Iron ore is going nowhere fast

Photo by Adam Berry/Getty Images

Iron ore prices slipped again on Wednesday, recording its first back-to-back decline since mid-July.

The spot price for benchmark 62% fines fell 0.44% to $61.67 a tonne, according to Metal Bulletin. It is still up 41.5% year to date.

Analysts at Metal Bulletin put the decline down to weakness in Chinese steel prices.

“China‚Äôs spot rebar prices started to show signs of softening amid a drop in the futures market,” they wrote.

“Prices retreated again after two consecutive days of gains, as sentiment was dampened by a drop in the futures market as well as a slowdown in trading activity amid sluggish summer demand.”

Providing no indication on what direction spot prices are likely to head on Thursday, Chinese iron ore futures did nothing in overnight trade.

The most actively traded September 2016 contract on the Dalian Commodities Exchange closed up 0.1% at 483 yuan. Rebar futures on the Shanghai Futures Exchange closed down 0.32% at 2,487 yuan.

Trade in both contracts will resume at 11am AEST.

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