The iron ore price fell for a second session on Wednesday, with Chinese futures pointing to more significant declines to come.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by 0.84%, or 49 cents, to $57.87 a tonne.
While a comparatively small decline, particularly in light of the enormous rally this year which has left the benchmark price up 32.8%, Chinese iron ore and rebar futures were hammered in overnight trade, suggesting a significant decline may arrive on Thursday.
The May 2016 iron ore future on the Dalian Commodities Exchange fell by 4.77% to 429 yuan, leaving it down 8.6% from highs struck earlier in the week.
Separately, the most actively traded October 2016 rebar contract on the Shanghai Futures Exchange slid by 3.05% to 2,128, snapping a six session winning streak in the process.
Combined, the heavy decline in both futures contract suggests further weakness will continue for the spot iron ore price should the weakness be sustained today.
Both contracts will resume trade at 12pm AEDT.
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