Iron Market: heading for a glut?

Iron Investing News reports iron market moving towards a gloomy start.

“We need to recognise the fundamentals of the market. The market would show that it does need a downward adjustment this year,” said Sam Walsh, head of Rio’s iron ore division. But given the potential for a recovery in industrial demand at some stage and indications from the spot ore market, prices don’t need to halve, Walsh said, adding: “If you look at the current spot price it really doesn’t verify a 50 per cent reduction in prices.”

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