Iron ore tanks again, futures point to further losses to come

Alex Caparros/Getty Images

Iron ore spot markets continued to swing wildly on Friday, this time to the downside.

According to Metal Bulletin, the spot price for benchmark 62% fines slid by 1.5% to $85.06 a tonne, largely reversing the 1.6% gain achieved on Thursday.

For the week it lost 7.9%, trimming the advance this year to 7.8%.

Both higher and lower grade ores also lost ground, albeit by a far smaller margin.

And with Chinese futures tumbling overnight, it looks like the downside pressure on spot markets may continue on Monday.

The most actively traded September 2017 iron ore contract on the Dalian Commodities Exchange tumbled 2.33% to 566.5 yuan on Friday evening, leaving it sitting at the lowest level since early January this year.

That decline mirrored a smaller drop in rebar futures traded on the Shanghai Futures Exchange which closed down 1.22% at 3,167 yuan.

Here’s the full scoreboard from Friday evening.

SHFE Copper ¥47,470 , -0.23%
SHFE Aluminium ¥13,965 , -0.32%
SHFE Zinc ¥23,180 , 0.61%
SHFE Nickel ¥83,400 , -1.15%
SHFE Rebar ¥3,167 , -1.22%
DCE Iron Ore ¥566.50 , -2.33%
DCE Coking Coal ¥1,229.00 , 2.42%
DCE Coke ¥1,731.50 , 3.84%

Trade in Chinese commodity futures will resume at midday AEDT.

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