Iron Ore Bear Market Looms on Increased Production and Slow Demand

Bloomberg reported that iron ore is set for its first surplus in at least 10 years as production increases despite slower demand from Chinese steel mills.

As quoted in the market news:

Seaborne supply will advance 9.1 percent and demand 8.3 percent in 2013, led by exporters from Perth-based Fortescue Metals Group Ltd. (FMG) to Vale SA (VALE5), Morgan Stanley forecasts. A surplus will emerge in 2014 and keep widening until at least 2018, the bank predicts. Prices will slump as much as 34 percent to $90 a ton by the end of December, according to the median of seven analyst estimates compiled by Bloomberg.

Click here to read the full Bloomberg report.