Iron Ore Prices Hit Lowest Point in Two and a Half Years

Reuters reported benchmark international iron ore prices hit their lowest level in more than two and a half years on Friday as China’s slowing economy reduced global demand growth.

As quoted in the market news:

The fall in the price of iron ore cargoes to the world’s biggest steelmaking country will trigger alarm bells among global iron ore giants such as Vale, BHP Billiton and Rio Tinto , all targeting growth in Chinese demand with rapid capacity expansion plans.

The Steel Index’s price for 62 percent-grade iron ore grade for delivery to China hit $116.20 per tonne on Friday, its thirteenth consecutive decline and the lowest since Dec. 29, 2009. The steel ingredient has declined 7 percent in a week.

Click here to read the full Reuters report.