Speculators cut iron ore bets
Traders cashing in despite recent pickup in demand
Reuters reports Wednesday that iron ore futures fell sharply as investors are cashing in on recent gains. The price of Benchmark Australian ore fell 4% on Wednesday, following a 6% drop in Chinese iron ore futures. The Financial Times writes that after the steelmaking ingredient rose to US$90 a ton this month, concern is growing the rally has reached its limit. Goldman Sachs analysts expect the iron ore prices to hold between US$80 and US$90 through April, but see the possibility of a downturn after that.