Iron ore is 're-calibrating' after its early week surge

Fridays. Chris McGrath/Getty Images

Iron ore spot markets slipped for a second consecutive session on Wednesday, although they’re still up significantly for the week.

The spot price for benchmark 62% fines fell 0.72% to $91.05 according to Metal Bulletin, taking its decline over the past two sessions to 1.28%.

Despite the slide, it’s still up 5.11% for the week, leaving the year to date gain at 15.4%.

While the benchmark price softened, lower grade ores rose with the price for 58% fines up 0.17% to $64.27.

Trade was thin during the session with Metal Bulletin suggesting that the market was “re-calibrating” following enormous gains earlier in the week.

The weakness in spot markets followed a slide in Chinese futures earlier in the session, and, with futures down again overnight, it suggests the weakness may continue into Thursday.

The May 2017 iron ore contract on the Dalian Commodities Exchange fell 1% to 695.5 yuan, mirroring a 1.29% slide in rebar futures which closed at 3,368 yuan.

Both coke and coking coal futures bucked the trend, rising 0.33% and 1.08% respectively.

Trade in Chinese commodity futures will resume at midday AEDT.

SHFE Copper ¥49,210 , -0.18%
SHFE Aluminium ¥14,575 , 1.04%
SHFE Zinc ¥23,520 , -0.49%
SHFE Nickel ¥90,100 , 0.55%
SHFE Rebar ¥3,368 , -1.29%
DCE Iron Ore ¥695.50 , -1.00%
DCE Coking Coal ¥1,219.50 , 1.08%
DCE Coke ¥1,660.00 , 0.33%

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