Iron ore prices fall to three-month low

Jessica Morris
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Shanghai rebar futures fell to a record low (Source: Getty)

Iron ore prices fell to the lowest level since July, amid a supply glut and crumbling global demand, particularly from its biggest consumer China.

Benchmark 62-per cent grade iron ore for delivery to China's Tianjin port fell 0.8 per cent to $52.10 a tonne on Tuesday, according to The Steel Index.

That was its lowest since July 27, stretching its losing run to a sixth consecutive day.

Despite this, Vale, Rio Tinto and BHP Billiton - the world's biggest and lowest cost iron ore producers - all recently reported increased output and shipments in the third quarter.

Read more: This chart shows the decline of the UK's steel industry

Iron ore, a steelmaking raw material, has fallen nearly 27 per cent this year, putting it on course for a third straight annual decline.

It comes as the crisis in the UK steel industry deepens due to a flood cheap steel from China, unfavourable exchange rates and high energy costs.

Britain's biggest steelmaker, Tata Steel, axed 1,200 jobs, while its competitor Caparo collapsed into administration with the loss of 1,700 jobs.

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