Spot iron ore markets weakened for a second consecutive session on Friday, although the decline was significantly less than that predicted by futures markets earlier in the day.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by a further 0.15% to $81.66 a tonne, following a 0.57% decline on Thursday.
Earlier in the day, Chinese iron ore futures were down more than 6%, a loss that was slowly whittled away over the session, helping to explain the comparatively modest decline in spot markets.
Despite recent modest weakness, at $81.66 a tonne, the benchmark price is still up 87.4% in 2016.
And, if futures markets are correct, it’s a gain that could get even larger by the end of Monday’s session.
The most actively traded May 2017 iron ore future closed Friday’s overnight session up 0.65% at 618.5 yuan, mirroring a similar gain in rebar futures.
Trade in both contracts will resume at Midday AEDT.