Chinese iron ore futures continued their downward slide, as the month of October came to a close. 62% grade iron ore scheduled for May delivery, which is seeing the most activity on the Dalian Commodity Exchange, traded at $150 a ton, including VAT and China’s other import fees. Futures contracts began trading on the Dalian exchange in mid-October. Iron ore prices for immediate delivery fell more than a percentage point, to $131.80 a ton, reaching their low prices of early October. Industry analysts predict that prices could fall as low as $130 a ton in November, however early trading results hold a small glimmer of hope that perhaps Dalian iron ore futures have stabilized. For example, traders expect BHP’s Australian Yandi iron ore to sell at around $123 a ton. Futures analysts point to overabundance of supply as the reason for the low prices. Continue reading →