The speculative parade-led bounce in the spot iron ore price appears to have run its course.
Overnight the price of 62% fines fell 25c, or 0.45%, to $55.64 according to pricing provided by Metal Bulletin.
Not only did the spot price slip, so too did Dalian futures.
The most actively traded January 2016 contract fell 6.5 yuan, or 1.76%, to 363 yuan in overnight trade. If sustained during Friday’s day session, it suggests another decline in the spot price will arrive this evening.
Indeed, Metal Bulletin note that “after the recent rises we have seen offer prices cut as some market participants expect the recent price rises to be coming to an end”.
Despite the recent bounce, the price for benchmark 62% fines has fallen 6.25% in July.