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After an already sizeable morning drop, prompted by a clampdown on housing loans, the price of iron ore in China sank still further in the afternoon session.
The futures contract for one tonne of iron ore for September delivery on the Dalian Commodities Exchange fell as much as 6.1 per cent to Rmb578.5 in morning trading, marking a new low for this month.
That drop brings the price of iron in China down 14 per cent since the September futures’ high of Rmb673 in late February, and marks the steel-making ingredient’s second technical correction (defined as a drop of 10 per cent from a peak) in that period.
Wednesday’s tumble began during the morning session, prompted by local media reports that banks in Beijing had raised their baseline home loan interest rate after China’s central bank ordered commercial banks rein in property lending growth.