Iron ore poised to extend recession

The fall in iron ore prices amid a bear market could herald further declines as refineries in China move away from low-grade ore.

The 62 cent ore in Qingdao fell 1 percent to $ 74.71 a tonne, after falling 6.8 percent late last week. Earlier in Asia, futures on the Dalian Exchange dipped to their lowest level since November, while in Singapore they traded below $ US72.

Iron ore is up, but growth is volatile, according to Australia's central bank and some mining companies. As there are fears that restrictions in China could hurt consumption, and forecasts of further expansion in supplies from Brazil, Australia and China will undermine prices. Steel in China has also declined in price.

China has tightened restrictions on its property market in recent months after prices rallied, dampening forecasts for structural steel and rebar. Last month, the central bank in Beijing asked banks to scrutinize mortgages and funding sources for borrowers, adding hurdles.

However, while prices have fallen, they remain well above the level seen 12 months ago. Iron ore rose more than 80 percent in price last year as steel production and demand in China were more robust than expected.