The iron ore price is back under pressure

Having rallied to the highest level since late January last week, the spot iron ore price has now fallen for three consecutive sessions.

According to pricing from Metal Bulletin the spot price for 62% fines fell a further 2.1%, or $1.34, to $62.91 a tonne on Tuesday. From the recent high of $65.61 struck on Thursday last week the spot price has now fallen 4.11%.

Year-to-date it is now down 11.7%, or 6.9% in Australian dollar terms.

Many analysts, including the likes of Goldman Sachs and Citi, have suggested in recent weeks that the spot price rally was not only unsustainable, but also likely to be reversed.

It’s early days but, for the moment, they may well be on the money.

Further steep price decline may be seen tonight. Dalian iron ore futures are currently trading down 3.5% from Tuesday’s close.

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