Big 3 dumping huge volumes as iron ore rally comes to abrupt end
Benchmark iron ore on Tuesday gave up $2.20 or almost 2% to settle at a 2-week low of $120.60.
Today's import price for 62% fines at China's Tianjin port is an almost 40% improvement since the commodity sunk to a three-and-a-half year low in September, but now the rally – driven by re-stocking in the world's second largest economy ahead of massive planned infrastructure spending – appears to have run its course.
South China Morning Post reports iron ore's big three were dumping huge volumes in China on Tuesday in a move said to be designed to pre-empt an expected slide in prices.
Brazil's Vale SA, and Anglo-Australian giants Rio Tinto and BHP Billiton were offering a combined total of around 600,000 tonnes of ore at spot tenders closing today which according to traders is substantially higher than usual volumes.
Reuters quotes a trader as saying "sentiment will start to weaken from this point onwards," adding that he anticipates the benchmark iron ore price to slide to $115 a tonne in the near term.
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