After an enormous 9% rally to start the week, the iron ore price fell heavily on Thursday.
Metal Bulletin’s iron ore index (MBIOI-62) slid by 2.5%, or $1.30, to $51.20, trimming its year to data gain to 17.5%.
Analysts at Metal Bulletin put the renewed weakness down to falling steel prices in China’s north and east.
“We have also seen weakness in the steel market as momentum slows in China’s rebar market as buyers resist higher offers Traders in both eastern and northern regions were encouraged by the continuous rise in Tangshan’s billet prices and raised their offers, but transactions began to slow down after buyers began to resist the higher levels,” said Metal Bulletin.
In overnight trade Chinese iron ore and rebar futures did next to nothing, providing no real indication as to the likely movement in the spot iron ore price today.