Iron Ore Falls on Projected Surplus

Bloomberg reported today that Iron Ore prices fell today on continued expectations for a surplus for the global seaborne market. Analysts are also saying that the base metal could drift lower, according to Bloomberg.

As quoted in the publication:

The commodity may retreat to $80 a metric ton this year, according to Helen Lau, an analyst at UOB Kay Hian Ltd. in Hong Kong, who’s tracked the market for seven years. Ore with 62 percent content at Qingdao, China, fell 1.2 percent to $89.02 a ton today, according to Metal Bulletin Ltd.’s website. That’s the lowest since September 2012, when it bottomed at $88.08. A price below $88.08 would be the lowest since October 2009.

Global seaborne output will exceed demand by 72 million tons this year and 175 million tons in 2015, Goldman Sachs Group Inc. estimates. China’s economy, which accounts for about 67 percent of seaborne demand, will probably grow this year at the weakest pace since 1990, according to a Bloomberg survey.

Click here to read the full Bloomberg article.