Iron ore price enters free fall
The spot price of iron ore fell further into uncharted territory on Tuesday with the steelmaking raw material declining to the lowest since the inception of the spot pricing system amid a widening supply glut and fears about demand from top consumer China.
The 62% Fe import price including freight and insurance at the Chinese port of Tianjin lost $1.90 or 3.6% to $51.00 a tonne on Tuesday. After giving up 47% in 2014, the price of iron ore is now down another 28.4% this year.
Tueday's peg was the lowest price since November 2008 when The SteelIndex, a unit of Platts, first started tracking the spot price. In 2008, the benchmark contract price was $60.80 a tonne, which was hiked from the annually-set price in 2007 of $36.63.
SEE ALSO: Iron ore market rebalancing won't go smoothly
New report says large surplus this year and next will push prices to $45 a tonne by end-2014.