Iron ore prices remain under pressure

Jeff J Mitchell/Getty Images

Iron ore spot markets continued to sink on Thursday, sliding to fresh one-month lows.

But with futures up overnight, it suggests the selling may be staring to ebb.

According to Metal Bulletin, the spot price slid 0.46% to $86.79 a tonne, taking its decline from February 21 to 8.5%.

Year to date is has still gained 10%, following a more than 80% increase in 2016.

While the decline in the benchmark price was modest, the falls were significantly larger for lower grade ores with the price for 58% fines slumping 2.2% to $59.47 a tonne.

“The iron ore market price level appeared to be stabilising somewhat today,” said Metal Bulletin. “While spot market liquidity was still thin, offer and bid levels on the physical platforms indicated a rangebound picture.”

However, indicating that the selling may be coming to an end, Chinese commodity futures stabilised in overnight trade after several days of heavy losses.

The most actively traded iron ore and rebar contracts on the Dalian and Shanghai Futures Exchanges added 0.61% and 0.32% respectively.

Not enormous, but a change from the trend seen earlier in the week.

SHFE Copper ¥46,570 , -0.85%
SHFE Aluminium ¥13,740 , 0.00%
SHFE Zinc ¥21,825 , 0.02%
SHFE Nickel ¥84,600 , -0.95%
SHFE Rebar ¥3,401 , 0.32%
DCE Iron Ore ¥658.00 , 0.61%
DCE Coking Coal ¥1,304.00 , 1.88%
DCE Coke ¥1,803.00 , 2.36%

Trade in Chinese commodity futures will resume at midday AEDT.

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