Iron Ore Sinks to Five-year Low

The Sydney Morning Herald reported that the benchmark price for iron ore for immediate delivery to Tianjin, China has slipped to a five-year low of US$83.40 per tonne.

Pushing the base metal down are “worries about China’s property sector” and “a flood of global supply.”

As quoted in the market news:

Analysts believe the iron ore price could fall even further, with Goldman Sachs forecasting an average price of $US80 a tonne next year, while CLSA has warned it will hit $US75 a tonne.

Australia’s most valuable commodity has fallen more than 35 per cent this year. Iron ore-focussed miner Fortescue Metals Group is among those to have sufferted, plumbing a two-year low on Friday at $3.86.

Click here to read the full report from The Sydney Morning Herald.