The iron ore rally is taking a breather

RAJESH JANTILAL / AFP / Getty Images

Iron ore prices slipped fractionally on Tuesday following an enormous increase on Monday.

The spot price for benchmark 62% fines fell by 0.53% to $61.94 a tonne, according to Metal Bulletin. On Monday it surged by close to 5%, leaving it trading at the highest level seen since early May.

In overnight trade Dalian iron ore futures softened, indicating that a further small decline in the spot price may be on the way today.

The most actively traded September 2016 contract closed down 0.41% at 481.5 yuan.

Trade in Chinese commodity futures will resume at 11am AEST.

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