After a solid rally over the past few days, the rise in the iron ore price came to a skidding halt overnight, with prices on the back foot once again.
September 62% Fe futures fell 54 cents to $84.17 a tonne which is not that remarkable. But it was the big moves of more than a dollar in the October and November contracts that raised eyebrows a little, while December futures – which will become the new benchmark contract soon – fell 88 cents a tonne to $84.25.
Has iron ore bottomed? Is it on its way back to the $90 a tonne level so many pundits seem to think it’s headed to by the end of 2014? It’s hard to tell but bottoming processes, if that is what this is, are often periods of volatile price rises as the bulls and the bears battle for the ascendancy.
For the moment the jury is still out and the downtrend is still very strong.