Iron ore suffered a rare decline on Friday

Photo: iStock

Iron ore suffered a rare decline on Friday, recording its largest percentage fall in three weeks.

According to Metal Bulletin, the spot price for benchmark 62% fines dropped by 0.7% to $65 a tonne, its largest decline since October 13.

Year to date it has gained 49.2%.

The slide in the benchmark price saw both higher and lower grade ores fall for the session.

Providing no real indication as to what direction spot markets will travel on Monday, Chinese iron ore futures did very little in overnight trade on Friday.

The January 2017 contract on the Dalian Commodities Exchange finished trade at 502 yuan, down 0.3% for the session.

The decline came despite some enormous gains in rebar, coking coal and coke futures which rose by 1.6%, 6.2% and 4% respectively.

Trade in Chinese commodity futures will resume at midday AEDT.

Perhaps explaining the gain in rebar futures, authorities in the Chinese city of Tangshan — a major steel producing region — announced further measures to tackle heavy smog in northern China on Friday, according to the Steel Index.

“Reportedly all steel mills in the city are required to shut down their sinter furnaces and bank furnaces until further notice,” the group said.

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