Iron ore seen extending slide as it seeks new floor

Iron ore is at risk of extending declines in the coming weeks after a drumbeat of warnings of a pullback helped to spur the biggest one-day slump in more than a year, intensifying investor concern about rising supplies and hammering miners' shares.

"It just appears to be a real capitulation phase going on in iron ore at the moment," Ric Spooner, chief market analyst at CMC Markets in Sydney, said after the benchmark spot price collapsed 8.5 per cent on Wednesday to the lowest since November 7. "This process may have further to go before we begin to reach a base, which is somewhere more like in the $US50-to-$US60 range."

Bloomberg