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Iron ore prices are on the downtrend on the back of a stronger dollar, Bloomberg reported. Despite recent positive comments from China’s Li Keqiang, concerns over the country’s economy were still putting pressure on the base metal.
Iron ore prices are on the downtrend on the back of a stronger dollar, Bloomberg reported. Despite recent positive comments from China’s Li Keqiang, concerns over the country’s economy were still putting pressure on the base metal.
As quoted in the publication:
Spot ore with 62% content in Qingdao fell 2.6% to $56.37 a dry ton on Thursday, dropping for a third day, according to Metal Bulletin. After gyrating this month, including the biggest one-day gain on record, prices remain 29% higher in 2016 following three years of losses on a global glut driven by rising low-cost supply and sinking steel demand in China. There’ll be no pricing on Friday.
Iron ore has been on a wild ride in March as investors sought to gauge conflicting economic signals from China against still-elevated port stockpiles and shifts in the US currency. Prices posted the biggest ever one-day gain on March 7 in a rally to the highest since June, prompting banks including Goldman to say the gains would be temporary. Miner BHP Billiton said after the spike that it was probably more bearish about iron ore than the price of any other commodity in its portfolio.