Iron ore looked like it was trying to find bottom last week with a few days of rallying. But this was quickly reversed and December 62% Fe Iron Ore futures have now made a fresh low for this run.
How low the price can fall is difficult to tell, with most analysts saying the price is due to recover toward $90 by years’ end. As we highlighted in the past however, a technical target of $70 a tonne remains.
For the moment though, this fresh low is going to to make the Arrium share price performance after the capital raising more difficult and likely put more pressure on the smaller iron ore miners like Atlas Iron and maybe even Fortescue Metals in the days and weeks ahead before a sustainable bottom can be found.