The price of iron ore has fallen as expectations of a US interest rate rise dampen the appeal of raw materials.
At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US47.40 a tonne, down 40 cents from its prior close of $US47.80.
The losses were driven in part by expectations the US will raise interest rates in December, strengthening the US dollar and cutting the appeal of commodities such as iron ore, oil and copper.
ANZ commodities analyst Daniel Hynes told The Australian commodity markets were also being buffeted by bad news out of China, noting that the closure of the BHP- and Vale-controlled Samarco project in Brazil following the dam disaster had not the slightest effect on the iron ore price.
“The fact the price hasn’t moved means there is no real focus on the supply side in iron ore because the consensus is so lopsided in terms of expected growth of production it makes no difference.”