io is up $1.11, fall in the price is temporary, page-2

Iron ore rallies above $US110
Mitchell Neems2 hours ago

Industries
Resources and Energy

The iron ore price has pushed back above $US110 a tonne for the first time this week, following a string of steep declines that has brought a sharp focus on the outlook for the commodity.

Benchmark iron ore for immediate delivery to the port of Tianjin in China came in at $US111.50 a tonne today, a strong upswing on $US107.40 a tonne yesterday.

Earlier this week, the price of iron ore charted its largest one-day price fall in more than four years on persistent fears over China's economy, dropping below the key $US105 a tonne threshold, after closing out the previous week at $US114.20 a tonne.

At the time, The Australian suggested the steep decline in the iron pore price could add as much as $10 billion to the existing $123bn of deficits faced by the Abbott government over the next four years.

Yesterday, Rio Tinto chief executive officer Sam Walsh said there was still strong demand for iron ore and copper in China, despite marked recent declines in the price of both commodities.

Meanwhile, Pilbara miner Atlas Iron claims the iron ore price would need to fall significantly before it affects the company's profitability.