The value of Western Australia’s most important mineral commodity is tumbling towards lows not seen in 2.5 years, putting three of the big four banks on track for vindication.
A tonne of the benchmark iron ore product is currently being traded for $US92.40 after shedding $US1.10/t overnight. It was above $US100/t during the middle of last month.
The steel-making commodity’s value is now at its lowest point since September and could be heading towards a sustained sub-$US90/t price for the first time since November 2022.
Iron ore briefly dipped below $US90/t in September — hitting $US89.50/t — but quickly rebounded.
Shares in local mining giants BHP, Rio Tinto, Fortescue and Mineral Resources were all in the red on Wednesday.
By 12.30pm, Rio was down 0.9 per cent, BHP lost 1.3 per cent, FMG dropped 4 per cent and MinRes sunk 4.8 per cent.
FMG’s entire revenue base is linked to iron ore and MinRes’ precarious balance sheet position is largely contingent on the success of its Onslow iron ore project.