Iron Ore crashes 22% to $74, reversing 6-month gain

Iron ore spot markets continued to slide on Tuesday, sending the benchmark price tumbling to closer to the lowest level in 6 month.

The price of Iron Ore 62% Fe, CFR China (TSI) hit $US74.89 a tonne. That compares with a February 21 close of $US94.86, the highest since 2014—a 21.05% per cent drop.

Analysts have a broad range of predications about price, but there is one thing they agree on; it is and will be going down.

Why? Rising inventories at Chinese ports, rising supply from Australia and Brazil, rising output within China, and expectations that steel demand within China would ease amid government efforts to slow both property speculation and credit growth among many others reasons are cited. In addition, the government is trying to curb pollution by closing some steel mills.

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