Iron Ore’s Pivot From Boom to Gloom Shows Risk of Drop Below $50
- Prices will probably extend declines, according to Maike’s Ren
- Citigroup says it’s still bearish on outlook amid oversupply
This article is for subscribers only.
Iron ore has pivoted from boom to gloom in a few short weeks. Benchmark prices are near $50 a metric ton as spectacular losses this month driven by rising supplies and a more cautious approach from mills in China have eviscerated April’s speculation-driven rally.
“Seaborne supply is rising while the Chinese steel mills will reduce purchases,” Ren Jiaojiao, an analyst at Maike Futures Co., said by phone from Xi’an on Tuesday before the price data. Inventories at China’s ports -- which topped 100 million tons last week -- may increase further, according to Ren.