Dip in price of iron ore

IRON ore spot prices have fallen below $US$70 a tonne for the first time since July after sliding 3.5 per cent overnight Tuesday.

The spot price was yesterday at $US68.30 a tonne, with futures also pointing to more weakness.

ANZ senior commodities analyst Daniel Hynes said the fall followed comments by the Reserve Bank in its September meeting, the minutes of which were released on Tuesday.

“(The RBA) said prices are expected to fall ahead of the ongoing expansion of the global iron ore supply chain,” Mr Hynes said.

“They also suggested steel production per capita was close to its peak and that growth to steel production would not add much to iron ore demand in the future.”