Iron Ore Market Avoids Supply Glut: Investec Securities

Bloomberg reported that the iron ore market will be able to prevent near-term supply surplus due to high demand from China, according to Investec Securities.

As quoted in the market news:

Unlike some other market commentators, we are not of the view that the iron-ore market will be materially oversupplied in the near term,” analysts led by Hunter Hillcoat in London said in an e-mailed report today.

The world’s biggest producers are planning $250 billion of new mines, threatening to deepen a price slump for the commodity already forecast to drop for at least the next three years. Ore with 62 percent iron content at the Chinese port of Tianjin fell 6.8 percent to $135.10 a dry metric ton this year, according to prices from The Steel Index Ltd.

Click here to read the full Bloomberg report.