Iron ore price breaks through $US80 mark

Iron ore has seen a slight price rebound, trading above$US80 a tonne.

Yesterday the benchmark price for the steel-making ingredient crept up to $US83.10 a tonne, a 3.9 per cent gain on its previous closing price of $US79.90.

Analysts said the gains comes on the back of positive trade data out of China which helped to boost optimism around iron ore stock-piling typically seen at this time of year.

However the commodity still has a way to go to make up for the 35 per cent loss it has experienced since the start of the year.

Sliding to lows of $US77.50two weeks ago, the pinch is starting to be felt by some higher cost producers who have been forced to shut up shop.

More recently, a cut of1500 public service jobs in Western Australia has also been attributed to the price slide, as it leaves a gaping hole in the state budget.

Iron ore posted just three days of positive trading for the month of September.

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