Iron ore is under the fire
Chinese futures can drop even lower, according to the global analysts. The current situation at the market of the iron ore must be considered as the real check made by reality. And this check was needed. The Chinese market may be needed another dose of it.
This Wednesday spot iron ore went down to the 84.99 dollars for one tone, which is 10.4 percent decrease. The peak in the 2017 year looked like 94.86 dollars. It was reached this February. Even with another decrease, the prices for iron ore still on its highs comparing to the past year.
Yesterday the most well-traded futures of iron ore on DCE fell down to the 677.7 Chinese yuan, which is 98.37 dollars for one tone. It lost almost 7 percent since the highest peak in this year reached 727.5 yuan at the end of the February.
Well, the contract of DCE is still 22.2 percent up in the 2017 year, showing that there is much to do and way to go before the process will be completely corrected.
We can see this in the gap with DCE prices and cargoes spot prices that go to China.
DCE contract in the USA dollars was close to the 106 dollars for a tonne in its highest peak in February this year, the extra premium in the 11 bucks to the usual price of the spot.
Actually, the premium had widened to this Wednesday for 13.50 dollars per tonne, indicating that DCE futures still lagging behind the spot price correction, even after it lost a ground.