Low Iron Ore Prices Will Persist, Says Citigroup

Reuters reported that Citigroup Inc. (NYSE:C) believes increased supply is set to keep iron ore prices low. However, the firm admitted that yesterday’s price drop — iron ore’s biggest one-day fall in four years — was a surprise.

As quoted in the market news:

‘The broad move lower is here to stay,’ Ivan Szpakowski, commodities strategist at Citi Research, said at an iron and steel conference in Perth.

‘Prices are moving on a cyclical basis due to the increase in supply. The question had been the timing of it, and the rapidity of the fall, that’s something that had not been expected,’ Szpakowski said.

Click here to read the full Reuters report.