After falling to a near decade low of $37 a tonne on 11 December, the iron ore price clawed back 16% without registering a single down day to open 2016 trading at $43.10.
That rally came to an abrupt halt on Tuesday with the Northern China 62% Fe import price including freight and insurance (CFR) losing 2.3%.
The bad news out of China that roiled equities and metals prices finally caught up with the steelmaking raw material. And with no change to the fundamentals for the industry it's hard to why iron ore would continue to climb.
Port inventories in China, responsible for more than 70% of the seaborne trade, are piling up again. China’s iron ore demand is set to fall by 4.2% in 2016 to just over 1 billion tonnes according to the country's Metallurgical Industry Planning and Research Institute as steel production shrinks 3.1%.
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