Iron Ore Prices in China Approach Five-year Low

Mining Weekly reported that iron ore prices in China have continued to fall due to slow steel demand and are close to reaching their lowest level in more than five years.

As quoted in the market news:

Citigroup slashed its 2015 iron-ore price forecast to $58 a tonne from $65, citing a decline in supply costs. The bank also cut its 2016 estimate to $62 from $65.

Benchmark 625 grade iron-ore for immediate delivery to China dropped 0.95 to $67.90 a tonne on Tuesday, according to data compiled by The Steel Index.

Citi analyst Ivan Szpakowski stated:

The fall in prices has lowered the critical cost support for iron ore and this is likely to continue falling as producer currencies depreciate further versus the US dollar and local disel prices continue to fall.

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