Iron's Rally Gives Way to Rout as China Futures Post Record Loss
- Banchero sees correction after prices have gained ‘too much’
- Singapore’s SGX AsiaClear contract declines for a sixth day
A bucket wheel reclaimer collects iron ore from a stockpile.
Photographer: Brendon Thorne/BloombergThis article is for subscribers only.
Iron ore is getting beaten down after a flurry of warnings that gains may be vulnerable. Futures in China have posted an unprecedented weekly loss; the most-active contract in Singapore is lower for a sixth day; and spot prices had the biggest slump since November.
“It’s an overdue correction in prices, which have risen too much,” Ralph Leszczynski, head of research at shipbroker Banchero Costa & Co., said in an email on Friday, while cautioning that the drop has come despite a positive underlying picture. “Fundamentals for iron ore remain very strong at present.”