At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US47.70 a tonne, down 1.2 per cent from its prior close of $US48.30 a tonne.
The commodity is now trading at the second-lowest price through the last 10 years, with the sharp fall to a decade-long trough $US44.10 a tonne in July potentially in danger.
Iron ore has risen just once through the past 19 sessions as persistent worries around rising supply and slowing demand growth weigh heavy.
The price action is putting intense pressure on mid-tier and junior miners, while the big three of Vale, Rio Tinto and BHP Billiton continue to face criticism for their willingness to press on with expansions in the face of tumbling prices.
Rio again defended its actions yesterday in the face of fresh complaints from smaller rival Cliffs Natural Resources this week.
“We are vigorously competing against global suppliers for market share. If we stop doing that the Pilbara producers will lose and Australia will lose. It’s that simple,” Rio’s iron ore boss Andrew Harding said.
“If my leadership journey has taught me one thing, it’s that your competitors will happily relieve you of your market share if given even half a chance.”
The head of US-based Cliffs on Wednesday warned that the inflexible actions of the majors would further drive prices down as the smaller firms rapidly cut costs.
The commentary follows BHP’s admission that tonnage has been slower to leave the market than expected, with the miner hinting a fall in prices below $US40 is a live possibility.