Spot iron ore prices have been tumbling as the Chinese steel industry slows and the Big Three iron ore mining companies continue to dig up more and more ore.
According to The Steel Index (TSI) iron ore spot prices for 62% Fe fines dropped below $50/dmt for the first time since the middle of April 2015.
Over the past week, 62% Fe spot prices have declined in China by $9.60/dmt or 16.2 percent. When looking at ore over the past four weeks iron ore prices have dropped by $14.20/dmt or 22.2 percent. We are now within range of the 52-week low for ore which was $46.70/dmt and a long way from the 52-week high of $98/dmt.
Steel Market Update heard from one of our analyst sources that hot rolled prices in Asia have collapsed by $30 per metric ton due to the combination of the collapse of iron ore pricing and a reaction to the dumping suits being filed against China in the United States and elsewhere around the world. Rebar futures pricing in China dropped 5.23 percent in day trading yesterday.
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