The iron ore price has dropped to its lowest mark in almost a month after sliding below $US90 a tonne overnight.
It was the first time iron ore had been below $US90 a tonne since February 10, with the price for 62 per cent fines finishing at $US89.73, a 1.7 per cent fall on the previous trading day.
Iron ore is still almost 14 per cent higher this year. The iron ore price reached a 2017 high of $US94.86 a tonne on February 21.
Australia’s leading iron ore miners – Rio Tinto, BHP Billiton and Fortescue Metals Group – have benefitted greatly from the surge in iron ore prices since the second half of last year.
All three posted significant increases in profits during the latest reporting period, with the higher iron ore price being a key reason for the improved performance.
Despite its rapid resurgence, the miners and analysts remain cautious of the iron ore price strength.
Fairfax reported this week that the iron ore price could fall as much as 30 per cent in the second half of the year, citing analysis from Gavekal.