Iron ore may be on the cusp of dropping into the US$30s a metric ton as the biggest producers expand supply and the onset of winter in China dulls demand that’s been hurt by the slowdown in growth in the top user.
“The outlook remains grim for iron ore fines because end- demand from construction and manufacturing is uncertain,” said Jessica Fung, an analyst at BMO Capital Markets in Toronto. “Steel inventories have been building.”
Spot ore with 62% content delivered to Qingdao fell 2.6% to US$41.13 ($58.1) a dry ton on Wednesday, a record low in daily prices compiled by Metal Bulletin dating back to 2009. It’s dropped each day this week, losing 7.6%. The raw material traded as low as US$10.51 in 1988, when annual benchmark contracts were negotiated between the largest miners and steel producers, according to data from the International Monetary Fund.
The commodity sank this year as the slowdown in China hurt demand while the top suppliers including BHP Billiton Ltd. and Rio Tinto Group in Australia and Brazil’s Vale SA boosted low- cost output. More seaborne supply is due to commence this week as billionaire Gina Rinehart’s Roy Hill mine loads its inaugural export cargo at Australia’s Port Hedland. China’s steel industry shrank further last month, official data showed.
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“The outlook remains grim for iron ore fines because end- demand from construction and manufacturing is uncertain,” said Jessica Fung, an analyst at BMO Capital Markets in Toronto. “Steel inventories have been building.”
Spot ore with 62% content delivered to Qingdao fell 2.6% to US$41.13 ($58.1) a dry ton on Wednesday, a record low in daily prices compiled by Metal Bulletin dating back to 2009. It’s dropped each day this week, losing 7.6%. The raw material traded as low as US$10.51 in 1988, when annual benchmark contracts were negotiated between the largest miners and steel producers, according to data from the International Monetary Fund.
The commodity sank this year as the slowdown in China hurt demand while the top suppliers including BHP Billiton Ltd. and Rio Tinto Group in Australia and Brazil’s Vale SA boosted low- cost output. More seaborne supply is due to commence this week as billionaire Gina Rinehart’s Roy Hill mine loads its inaugural export cargo at Australia’s Port Hedland. China’s steel industry shrank further last month, official data showed.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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