03/03/2015 – Iron ore slips back under $US63
The price of iron ore is again tracking towards a new five-and-a-half-year low after falling for the fifth session in six.
At the end of the latest offshore session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US62.80 a tonne, down 0.3 per cent from its previous close of $US63.00 a tonne.
The commodity is less than 3 per cent above the five-and-a-half-year low of $US61.10 a tonne set last month and flirting with its first dip below $US60 since 2009.
The latest session was dominated by talk of the latest rate cut from the People’s Bank of China, with some optimistic the move could prop up flagging commodity prices.
However, new data showing softening house prices and a contracting manufacturing sector proved too much for traders to overlook ahead of the start of the construction season in China.
The next month is likely to provide a solid lead for the true demand in the market as the slow winter and Chinese New Year period is now behind us.
Most analysts still predict the commodity to trade in the range of $US60-$US65 a tonne for the duration of 2015, which is where it has stood for several weeks.
Source – BusinessSpectator.com.au