Iron Ore Miners Face Test of Discipline as China Challenge Looms
- China push to cut steel overcapacity may hurt demand, DBS says
- It could be difficult for market to sustain gains, bank warns
What's Weighing on Iron Ore Prices?
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The world’s largest iron ore producers will need to exert tight control over supplies to keep prices at about $45 a metric ton as China’s drive to weed out unwanted steel capacity poses risks to demand, according to Singapore-based DBS Group Holdings Ltd.
The commodity’s rally in 2016 may come under pressure as consumption in China is poised to weaken in the coming years, Chief Investment Officer Lim Say Boon said in a report. Iron ore was steady at $55.86 a dry ton on Monday, and hasn’t traded below $45 since February, according to Metal Bulletin Ltd.