Asia Unhedged | Iron ore retreats on negative outlooks, low China demand
A labourer shovels iron ore into a steel ladle at Wuhan Iron and Steel Group in the capital of central China's Hubei province October 17, 2007. Photo: Reuters, Stringer
A labourer shovels iron ore into a steel ladle at Wuhan Iron and Steel Group in the capital of central China's Hubei province October 17, 2007. Photo: Reuters, Stringer
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Iron ore retreats on negative outlooks, low China demand

Bear-market turn comes after Barclays, Australia central bank forecasts

April 10, 2017 9:17 PM (UTC+8)

Bloomberg reports on a bear-market turn for iron ore:

  • Ore with 62 percent content fell 1% to US$74.71 a dry ton on Monday
  • Prospect raised of a drop into the US$50s
  • Negative outlooks from Barclays, Australia’s central bank and mining companies helped push price down
  • Barclays: the price weakness is a result of slackening in end-use steel, which led to a switch to abundant lower-quality ores
  • Axiom Capital Management: “The timing is ripe” for bets on lower prices. There are increased mine supplies and tentative signs that China’s record stockpiles may be starting to be sold off
  • China’s tightening real-estate market restrictions could put pressure on construction steel demand
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