Iron ore price tumbles below $US70

The iron ore price has plummeted below $US70 on the back of increased supply as China’s steel demand begins to soften.

The price dropped 8.5 per cent on Wednesday, to reach around $US68.04 a tonne, according to financial services firm Patersons.

Earlier this year, the iron ore price had been reaching peaks above $US90 before dropping to $US89.73 a tonne in March – the first time it reached below US$90 since February.

The drop in price comes as major steel producers begin to reduce prices in an effort to cut down on iron ore inventories, The Australian reports, and as restrictions on housing finance impacts infrastructure demand.

The gold price, however, has remained strong, reaching a five month high of over $1700.

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