Iron ore got destroyed overnight

China Photos/Getty Images

The spot iron ore price was pummelled yet again overnight, falling by close to 5%.

According to Metal Bulletin, the spot price for benchmark 62% fines fell by $2.16, or 4.52%, to $45.58 a tonne.

Putting that figure into perspective, there has been only one other day where the spot price has been lower – July 8 this year when it plunged 10.1% to $44.59 a tonne.

Year-to-date it has now lost 36%, extending its losses from the record high of $191.90 set in early 2011 to 76%.

Metal Bulletin suggests continued weakness in rebar prices – falling to fresh record lows on Tuesday – saw iron ore traders at Chinese ports forced to make further price concessions.

Pointing to the likelihood of a further substantial drop in the spot price this evening, Chinese iron ore futures tumbled yet again to a fresh record low in overnight trade.

The most actively traded January 2016 contract on the Dalian Commodities Exchange fell 1.46% to 338.5 yuan. If sustained during Wednesday’s day session it suggests there’s likely to be more weakness in the spot price when the daily fixing occurs around 10pm AEDT this evening.

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