The Iron ore price has fallen below $US60 a tonne for the first time since late June.
Iron ore, Australia’s top export commodity, was 2.2 per cent lower in overnight trading for the benchmark 62 per cent fines, finishing the session at $US59.65 a tonne.
A Patersons Securities report explained: “Chinese iron ore prices continued to trend lower in Wednesday Asian markets. The Qingdao 62 per cent content iron ore fines prices ended the day under $US60 a tonne for the first time since 27 June.”
The Iron ore price may finally be giving in to analyst forecasts that it will drop in value over the second half of 2017 with this latest dip.
In the September quarter report from the Department of Industry, Innovation and Science, iron ore was forecast to average $US50 a tonne in 2018 and $US49 a tonne in 2019.
Meanwhile, the US dollar gold price continues to threaten $US1300 an ounce, with it improving slightly to $US1292.48 an ounce overnight. In Aussie dollar terms, gold is worth $1658.90 an ounce.
It was a mixed bag for base metals. Copper ($US6756 a tonne), nickel ($US11,061 a tonne) and tin ($US20,990 a tonne) were the best performers.