Economics
Iron Ore's Record Jump Seen as a `Blip' Rather Than Revival
- Rally is there to be sold as fundamentals don't stack up: UBS
- Futures in Singapore slide 6.3%, paring advance on Monday
What's Driving the Surge in Iron Ore?
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Iron ore bears including Citigroup Inc. are unconvinced that a record jump in prices amid renewed optimism over China’s economy signals a sustained rebound in the steel-making raw material.
The 19 percent surge Monday came after Chinese policy makers indicated their willingness to bolster economic growth, boosting the outlook for steel and igniting speculation that some investors who’d bet against the market had been caught out. Citigroup said it’s still bearish as supply and demand fundamentals remain weak while Axiom Capital Management Inc. said the price jump was probably just a “blip”.