Iron ore price slumps 2.3pc
The price of key export iron ore has sunk to a near two-month low as investors shun risk on global markets.
The price of key Australian export iron ore has sunk to a near two-month low as investors shun risk on global markets.
Iron ore delivered to the port of Tianjin in China slumped 2.3 per cent to $US56.20 a tonne in the latest offshore session, leaving traders eyeing a drop below the federal government’s $US55 forecast in the near-term.
The commodity has risen just three times across the past 15 sessions, with the latest correction coming as global markets suffer a bout of selling tied to concerns around a possible US rate hike later this year.
It also follows a run of positive data out of China that has cast doubt on fresh stimulus from Beijing before the end of the year.
Investors would normally cheer the robust Chinese industrial production numbers delivered yesterday but given the prospect of more stimulus has been a key catalyst in a recent push above $US60 a tonne, the news was taken as a negative for iron ore markets.
Most analysts still project the commodity to fall back into the $US40s within the next 12 months, a result that would pressure budget forecasts and the share prices of Australia’s mining giants.
In London trade, BHP Billiton shares slid 2.3 per cent, while Rio Tinto backtracked 1.6 per cent.