Reuters reported that spot iron ore prices dropped below USD 130 per tonne to the lowest level in six months as a sluggish outlook for steel demand limited appetite from Chinese mills, most of which are well stocked in the raw material after recent hefty imports.
According to data compiler Steel Index, Iron ore for immediate delivery to China's Tianjin port .IO62-CNI=SI fell 1.1% to 129.50 per tonne on Tuesday, its cheapest since July 16.
The commodity's last brush with the below USD 130 level was in early August after which it quickly rebounded to a high of USD 142.80 in the middle of that month as the price drop and a firmer steel market drew buyers back. But a similar price revival is unlikely this time.