Iron ore price plunges below $US70
Iron ore plunged below $US70 a tonne for the first time in five months today, shedding $US6.34 to $US68.04.
The 8.5 per cent slump is the commodity’s biggest one-day fall since May last year, when the price was on a savage slide to long-term lows of $US48/t in June.
Its price is now off more than 28 per cent since hitting $US94.86 in February.
The calls of analysts who have predicted it will again fall below $US50/t by the middle of the year are looking stronger.
The Dalian futures exchange has also fallen, with active contracts off 2.5 per cent, indicating the spot price is likely to continue its pre-Easter fall.
Over the past six months the iron ore price had made fools out of analysts, who have consistently talked down the commodity’s prospects, by climbing steadily from a low of $US56 in mid-October to a high of $US94.86 on February 21.
In that period it has averaged $US79 a tonne, more than double the decade low of $US38 a tonne where it started last year.
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