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Iron Ore Rout Deepens as Rising Supply, Weaker Demand Feed Glut

  • Ore extends drop to lowest level since start of daily pricing
  • `The key problem is oversupply,' says MineLife's Wendt

Iron ore has taken a fresh beating, with prices sinking to the lowest level in six years as output cuts at Chinese mills hurt demand while low-cost supplies from the biggest miners expand. It may get worse.

“The key problem for iron ore is oversupply: the iron ore heavyweights have overestimated China’s appetite,” Gavin Wendt, founding director at MineLife Pty Ltd. in Sydney, said after prices dropped on Tuesday to the lowest level since daily data began in 2009. “Further price weakness is inevitable.”