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Mining Australia reported that iron has fallen to belos the US$50 per tonne benchmark, hitting US$49.60 overnight, the lowest point the metal has seen in two months.
Mining Australia reported that iron has fallen to belos the US$50 per tonne benchmark, hitting US$49.60 overnight, the lowest point the metal has seen in two months.
As quoted in the market news:
This is the latest fall for the commodity, after slipping to US$52 earlier this week. The overnight price puts the metal at its lowest point in more than two months, and close to its record lows in April, when iron ore was trading at $US46.70 per tonne, forcing companies to mothball operations and cut thousands of jobs.
An ongoing collapse of the price has eroded the rally made since April, with the fall pushing many junior producers into dangerous territory below break-even prices.
Last month UBS analyst Daniel Morgan predicted the slide to continue to US$45 a tonne, unless drastic action was taken. This was echoed by Clarksons mining analyst Jeremy Sussman, who forecast the recent slump to continue to US$40 per tonne.
Atlas Iron was a high-profile victim of the iron ore collapse earlier this year after it closed its Pilbara mines and cut 600 jobs.
Since then, Atlas contractors have stepped in to help the company stay afloat, ushering in new deals that were expected to deliver Atlas a break-even price of US$50 per dry metric tonne for 62 per cent Fe, a point which has now been passed.
Click here to read the full Mining Australia report.