Iron ore sinks below $80 on China slowdow

[FrieFrench]

Following a short-lived rally last week that took the commodity to $85 per tonne, the benchmark iron ore price for immediate delivery at the port of Tiajin in China dropped 2.3 per cent to $79.80 per tonne overnight on Monday, the lowest price since September 17, 2009.

Through one of the worst periods for the commodity since the financial crisis, iron ore has climbed just three times in the past 26 trading sessions, with red figures seen in the last six after a surprise 3.9 per cent bounce at the start of last week.

Via Iron ore sinks below $80 on China slowdow

 

[fxmade2trade]

Metals seem to be declining in price, usually that means demand should increase...the irony lol unfortunately China has big plans to recycle scrap metal on a huge scale.

 

[FrieFrench]

The biggest issue is that last year the big iron mines like Vale, Rio Tinto and BHP Billiton decided to flood the market to get the smaller players out of the market and that is what is at play right now. This, plus the fact that China is slowing down and wants to recycle scrap metal.

 

[12WBT]

RIO is mining @ $50 per tonne.
BHP is a little bit more.
But the smaller pure iron ore miners are around $70 to $80 per tonne.
Western Australian government is budgeting on $120 per tonne.

 

[FrieFrench]

It's good to be the King!