Iron ore price drops 15 per cent overnight

The dollar has fallen overnight as has the price of iron ore, making talk of recession not just about impact of lockdowns but commodity prices as well, according to Sky News Business Editor Ross Greenwood.

“If the lockdowns are certainly hurting Australia’s economy then the commodity prices are really, if you like, giving the extra jab,” he told Sky News Australia.

Mr Greenwood said the iron ore price “has fallen and continued to fall” overnight for a drop of over 15 per cent and is now priced at US$130.02 a tonne.

“The government has already indicated that it believes the iron ore price would fall, in fact it’s got an average price of just US$55 in the budget so it’s still well above that budget level,” he said.