For the third day in a row the spot iron ore price has fallen to a fresh record low.
According to Metal Bulletin, the spot price for benchmark 62% fines slid a further $1.11, or 2.63%, to $41.13 a tonne.
This extends the year’s losses to 42.3%.
In Australian dollar terms, the price has declined 35.7% over the same period. So while the currency has fallen, it has been nowhere near enough to offset the slide in the spot price.
Since October 12 the price – both in US and Australian dollar terms – has plummeted by 27%. This raises the question of whether the Australian dollar is continuing to adjust to lower commodity prices, as the RBA continues to suggest.
It is Australia’s largest goods export by value by some margin, and it’s fallen a long way fast with absolutely no reaction from the Aussie.
Suggesting that the spot price could fall even further this evening, near-dated iron ore futures continued to tumble overnight with the January 2016 contract on the Dalian Commodities Exchange sliding by a further 1.11% to 310.5 yuan.
Should futures hold or extend those losses during today’s day session, it risks pushing the spot price below the $40 a tonne for the first time ever later this evening.
Dalian futures resume trade at 12pm AEDT with the next spot price fixing occurs following at 10pm AEDT.