Iron ore prices continued to tumble on Tuesday, falling for a fifth session in a row.
According to Metal Bulletin, the spot price for benchmark 62% fines slid 1.48% to $56.02 a tonne, leaving it at the lowest level seen since July 11.
Since July 13, the price has now lost 5.66%, trimming its year to date gain to 28.6%.
Vivek Dhar, a mining and energy commodities analyst at the Commonwealth Bank, put the renewed price slide down to weakening sentiment towards the outlook for China’s property market and a continued build in iron ore inventories held at Chinese ports.
“Iron ore fell on demand concerns after new home prices in China grew more softly in June,” says Dhar. “The increase in iron ore port inventories in China last week also weighed on prices.”
After two days of savage declines, Chinese iron ore futures weakened moderately overnight, indicating that spot prices may stabilise on Wednesday.
The most actively traded September 2016 contract on the Dalian Commodities Exchange slid by 0.58% to 425.5 yuan, taking its decline since July 13 to close to 10%.
Trade in Dalian will resume at 11am AEST.
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