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Physical, futures prices sink
* China trade data shows supply building
* Australian iron ore miners retreat
SYDNEY, April 13 Chinese iron ore futures nosedived to a three-month low on Thursday, reacting to dramatic falls in the physical spot market as the demand outlook continues to deteriorate.
At the same time, fresh Chinese trade data has revealed that a relentless influx of imported ore continues to flood Chinese ports, where inventories SH-TOT-IRONINV have ballooned to more than 130 million tonnes.
Iron ore miners in Australia, until recently basking in a bull market, are watching their shares plummet as ore prices retreat at lightening pace.
"Iron ore miners are firmly on the back foot," said MineLife analyst Gavin Wendt. "All of a sudden, iron ore is out of favour, we have seen some dramatic drops."
Overnight iron ore for delivery to China''s Qingdao port collapsed by 8.5 percent to its lowest since last November.
The Metal Bulletin 62 percent fines price .IO62-CNO=MB retreated $6.34 to $68.04 per tonne, marking the biggest one-day percentage decline in 13 months. Spot ore has now lost 16.5 percent of its value in the past five sessions.
Nev Power, chief executive of the world''s fourth-biggest producer Fortescue Metals Group, whose shares toppled more than 8 percent, predicted the rout is far from over.
-The
18th China(Guangzhou)Int’l Metal &Metallurgy Exhibition
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