One thing that always fascinates me about commodity markets, is how far prices can move when the demand/supply balance tips from deficit to surplus or vice versa. Producers and buyers take time to change their business models (close mines, factories or whatever). In the meantime they are forced to meet the market and so momentum plays a big part in price change (think oil going from $10 to $147 or gold from $250 to $1920).
The chart below is the daily index of spot prices for 62% fines imported to Tjianjin in China. Now that we’ve broken under the 2012 low of $87, there’s not much on the horizon. The market did a bit of work around $79/80 back in 2009. This represents the next minor support level. Resistance is around $94.
Iron Ore chart Update