Iron ore’s long anticipated price correction finally arrived in August – and came spectacularly! Daily spot prices for 62% Fe iron ore fines shed almost US$45/tonne in a little over eight weeks. Average prices have fallen 25% month-on-month. The correction brings 62% Fe fines indices inline with our fundamental analysis. But why did the price decline happen so dramatically? And where will prices go next? Whilst supply is improving announcements from BHP, Vale and the Indian state of Odisha suggest further disruptions are possible. And on the demand side, Chinese steel production restrictions pose risk to our view. It has been a dynamic six months for iron ore, and although prices might seem like they are back where they belong, there is plenty of scope for volatility in Q4.