Iron-ore drops to fresh 3-week lows

Iron-ore prices extended its bearish momentum and hit fresh three-week lows on Friday, as markets look past China restocking news amid pre-Christmas/ Year-end holiday trading.

The Steel Index show iron ore dropped 2.8% to $US77.10 a tonne last hours down from $US79.30 previously, hitting the lowest levels since December 1.

Last week, iron ore scored a new two-year high of $US82.80 as markets cheered reports of Chinese stockpiling ahead of the quiet Lunar New Year period.

FocusEconomics in its December survey of analysts and institutions show the price of iron ore averaging $60.30 a tonne during the first quarter of next year. For Q4 2017, analysts expect prices to fall further to average $55.70 over the three month period.