The move by iron ore prices above $US100 a tonne ended on Monday when the Metal Bulletin Index prices slid more than 2.4% to just over $US99 a tonne.
The Metal Bulletin index price for 62% Fe ore delivered to northern China ended at $US99.12 a tonne on Monday, down $US2.48 a tonne from Friday and over 8% from the five year plus high of $US108.62 hit nearly a week ago.
Analysts say it is now possible that iron ore prices will fall quickly to $US85 to $US90 a tonne with Brazilian production and exports recovering in May, though at levels still down on 2018.
Another fall of Monday’s size will push iron ore prices into correction territory thanks to weakening profit margins and falling steel product prices in Chinese domestic markets.
The weaker prices came despite further evidence of the damage the January 25 dam disaster and subsequent mine closures are doing to Brazilian exports.
Figures released on Monday showed a 205 slide in iron ore exports from the county last month.
Brazil’s ministry of economy said exports totalled 29.02 million tonnes last month, compared with 34.62 million tonnes in May 2018.
But volumes did increase by 51% month on month from 18.34 million tonnes in April as mines owned by Vale in the north of the country resumed full scale mining and shipments after rain delays in April.
