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Iron Ore Set for Bear Market as Chinese Restocking Ends
Jan. 09, 2013 04:32PM PST
Base Metals Investing Bloomberg reported that iron ore continues to climb as Chinese mills restock, even after posting the largest recorded quarterly climb in the last quarter of 2012. However, according to Deutsche Bank AG, it is set to plunge into a bear market afterwards.
Bloomberg reported that iron ore continues to climb as Chinese mills restock, even after posting the largest recorded quarterly climb in the last quarter of 2012. However, according to Deutsche Bank AG, it is set to plunge into a bear market afterwards.
As quoted in the market news:
Prices may rise to $170 a ton in the first half on demand in the biggest buyer, before falling to less than $120 as supply expands, Deutsche Bank said in a report. Ore with 62 percent content delivered to Tianjin rose to $158.50 a dry ton yesterday, the highest since October 2011, according to data from the Steel Index Ltd. A drop from $170 to $120 implies a 29 percent fall, more than the 20 percent that typically defines a bear market.