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The Australian reported that iron price has dropped below US$50 as demand from Chinese steel mills continues to decline.
The Australian reported that iron price has dropped below US$50 as demand from Chinese steel mills continues to decline.
As quoted in the market news:
At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US49.50 a tonne, down 2.6 per cent from its prior close of $US50.80 a tonne.
The commodity is trading at its lowest mark since mid-July having not enjoyed a positive session for more than two weeks.
The recent weakness has been driven by a multitude of factors, including signs of persistent output from suppliers, worries about sliding demand growth in China and softening oil prices.
The latest blow came in the form of demand worries as the China Iron & Steel Association outlined growing pain in the steel sector.
“China’s steel demand evaporated at unprecedented speed as the nation’s economic growth slowed,” Zhu Jimin, the deputy head of the association, said, according to Bloomberg. “As demand quickly contracted, steel mills are lowering prices in competition to get contracts.
Click here to read the full The Australian report.