The iron ore price fell modestly overnight, continuing the choppy price action seen in recent days.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by 1.2%, or 51 cents, to $41.92 a tonne.
Metal Bulletin analysts suggests the pull back in the spot price corresponded with weakness in Chinese steel prices.
The steel market also saw weakness today. Northern China’s spot rebar market lost ground as traders dropped offers amid rising inventories to try and grab sales ahead of the holiday. Rising stocks prompted traders to lower prices to try and close deals. In the east, sellers held offers on anticipated supply tightness after the Chinese New Year holiday on February 7-13.
Suggesting that the weakness in the spot iron ore may continue today, Chinese futures fell in overnight trade.
The most actively traded iron ore and rebar futures fell by 0.93% and 1.63% respectively, suggesting that further weakness may arrive when Metal Bulletin’s iron ore index is released later on this evening.
Trade in Chinese futures will resume from 12pm AEDT.