Iron Ore price falls almost 4%, weighs over AUD

FXStreet (Mumbai) – The price of iron ore fell almost 4% overnight – the steepest fall in two months, its third consecutive day of losses for the commodity.

Benchmark iron ore for immediate delivery to China trading at US 62.10 /tonne on the back of concerns China’s steel production will remain muted. According to the China Iron & Steel Association (CISA), China’s steel consumption fell 4.7% year on year to 61.5Mt in May.Surplus in the Chinese steel markets is likely to keep steel prices subdued, making a recovery in iron ore prices unsustainable.

The current price of the iron ore, though well above the 10-year low of USD 47/tonne, is still lower than the cost of production for many Australian miners.

The drop in the iron price has pushed the AUD/USD pair lower by 0.32% to trade at 0.7727 levels.

The price of iron ore fell almost 4% overnight – the steepest fall in two months, its third consecutive day of losses for the commodity.

(Market News Provided by FXstreet)