It has been a bad night for the iron ore price. A very bad night.
According to Metal Bulletin, the spot price for benchmark 62% fines slid by $1.38, or 2.50%, to $53.74 a tonne. Lower grade ores were also under pressure, just not to the same extent as benchmark prices.
Metal Bulletin note that it was a “very quiet” session for the spot market, perhaps explaining the large size of the decline.
Chinese iron ore futures were down heavily again overnight. The most actively traded January 2016 contract on the Dalian Commodities Exchange closed the overnight session down 1.47% at 369.5 yuan.
Should the losses be maintained or extended upon during today’s day session, it points the likelihood for further decline in the spot price this evening.
Trade in Dalian will resume at 12pm AEDT.