The iron ore price continued to slide on Friday, falling to the lowest level seen since April 8.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by 51 cents, or 0.93%, to $54.54 a tonne.
For the week the benchmark price fell 6.43%, extending the decline registered since April 22 to 22.6%. Year to date the price has risen 25.2%.
Analysts at Metal Bulletin put the continued slide down to corresponding weakness in Chinese steel prices.
“The almost continuous price drops over the past two weeks have resulted in China’s spot rebar market losing almost all its gains since early April. Rebar prices resumed its downtrend on Friday May 13 after the billet and futures markets started to weaken again,” they wrote.
Suggesting that the weakness in iron ore may reverse on Monday, Chinese commodity futures all pushed higher on Friday evening.
The most actively traded September 2016 iron ore futures on the Dalian Commodities Exchange jumped by 1.78%, outpacing gains of 1.23% and 1.14% for rebar and coking coal.
These gains came before the release of key Chinese economic data over the weekend which missed expectations, suggesting there’s a risk that the moves could be reversed when trade gets under way from 11am AEST.
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