Spot iron ore markets were hammered on Friday, recording the largest one-day percentage loss in over a year.
The spot price for benchmark 62% fines tumbled 6.76% to $75.45 a tonne, according to Metal Bulletin, extending its decline from the multi-year high of $94.86 a tonne struck on February 21 to 20.5%.
It was the largest percentage decline since March 9, 2016, and left the benchmark prices at the lowest level since November 30 last year.
Year to date it has now lost 4.3%.
Mirroring the movement in benchmark price, those for higher and lower grade ores were also hammered lower.
“Severe declines were seen across the iron ore grade boundaries today as support for benchmarks gave way,” said Metal Bulletin.
“China’s spot rebar prices experienced sharp falls on Friday after the billet and futures markets tumbled.
“Losses in the futures market worsened the situation, which led buyers to postpone their procurement in anticipation of even lower prices.”
However, after such a dramatic plunge in spot and futures markets on Friday, there are signs that the selling momentum may stall, or even reverse, on Monday.
Chinese futures closed well off the lows seen earlier in the session in overnight trade on Friday, hinting that the scale of decline has encouraged some traders to wade back into the market.
Here’s how the final scoreboard from Friday’s overnight session.
SHFE Rebar ¥3,111 , 0.00%
DCE Iron Ore ¥526.50 , -1.50%
DCE Coking Coal ¥1,307.00 , 0.69%
DCE Coke ¥1,850.00 , 0.22%
Rebar futures were unchanged, coking coal and coke futures closed higher while those for iron ore also recovered off the lows seen earlier in the session.
Trade in Chinese commodity futures will resume at 11am AEST.
Business Insider Emails & Alerts
Site highlights each day to your inbox.