Iron ore had an appalling night with the September futures contract down $2.25 a tonne to $90.58.
It’s a sign that the price fall has further to go yet before buyers see real value and a further sign that the aggressive downtrend is being eyed by traders as intact.
It’s also a sign that the ASX, which fell 31 points in futures trade overnight, is going to be under pressure in trade today.
The bad news, for Atlas Iron, BC Iron, Fortescue Metals, Arrium and others is that iron ore technically looks like it can crash further.
That didn’t stop Arrium CEO Andrew Roberts yesterday saying that, “We expect in the next one or two quarters that iron ore prices will improve”
But, as Business Insider highlighted last month, on the the long-term monthly charts iron ore looks like a bubble that has been popped and a price of around $70 a tonne for a bottom can’t be ruled out.