Iron ore is tanking

Alex Caparros/Getty Images

Fitting with the bearish price action in base metals on Tuesday, the iron ore price fell heavily overnight, dropping to a fresh three-week low.

According to Metal Bulletin, the spot price for benchmark 62% fines fell $1.09, or 1.90%, to $56.21 a tonne.

The decline, the steepest in percentage terms since August 24, left the price at levels last seen on August 31.

Suggestive of further losses for the spot price later on this evening, Chinese futures fell heavily overnight with the most actively traded January 2016 contract dropping 10.5 yuan, or 2.78%, to 367 a tonne on the Dalian commodities exchange.

If sustained throughout today’s day session it points to the likelihood of a further substantial decline in the spot price this evening.

Trade in Dalian will resume at 11am AEST.

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