Despite yet another plunge in China’s stock market and further weakness in futures markets yesterday, the iron ore price ticked higher in Tuesday trade.
According to Metal Bulletin the spot price for benchmark 62% grade ore rose by 17 cents, or 0.32%, to $53.45 a tonne.
On Monday the spot price suffered the 15th largest decline on record, losing more than 5%.
Over 2015 it has fallen 25%.
Despite the small rise in the price, along with further monetary policy easing announced by the PBOC overnight, analysts at Metal Bulletin believe the spot iron ore market remains under significant pressure.
“The spot iron ore market has stabilised with a number of deals taking place. Despite today‚Äôs small rise the market remains under significant pressure as wider growth issues hit the Chinese economy. Late this afternoon, China cut interest rates with the reserve ratio requirement also being cut to help support the market”.
Pointing to the likelihood of another rise in the spot price this evening, Dalian iron ore futures rallied in overnight trade – presumably on the back of renewed policy easing form the PBOC – with the most actively traded January 2016 contract gaining 2.35% to 369.5 yuan.
Trade in Dalian will resume at 11am AEST.