Reuters reported today that price for iron ore rebounded somewhat on Tuesday following yesterday’s lows. Prices fell below $90 a tonne for the first time since fall of 2012, according to the news outlet. Australian 61 percent grade Pilbara iron ore was priced even lower than iron on the seaborne market.
As quoted in the publication:
Iron ore for September delivery on the Dalian Commodity Exchange, the most active contract, closed 0.9 percent higher at 667 yuan ($110) a tonne, after earlier touching 656 yuan, its lowest since being launched in October. The July iron ore contract on the Singapore Exchange rose 1.2 percent to $89.24 per tonne, rebounding from a session low of $87.69, which was its weakest since SGX introduced iron ore futures in April last year.
An iron trader in Singapore told Reuters:
There’s some short-covering after the sharp fall in prices. But the outlook is still bearish because of an oversupplied market.