The price of iron ore has fallen for the seventh session in the last eight as investors continue to fret about rising oversupply risks in the next 12-24 months.
At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US60.50 a tonne, down 0.2 per cent on its prior close of $US60.60 a tonne.
The latest inch toward the $US60 a tonne mark came after another soft reading on Chinese factory activity as the HSBC flash PMI came in at 49.6 in June. The reading is just below the 50 point mark that separates growth from contraction, but was an improvement on May's 49.2 level.
Crucially, the reading topped forecasts for a 49.4 mark, which had copper and nickel markets soaring in offshore trade. However, the impact on iron ore was muted as investors continue to eye rising supplies and slumping steel prices.
The commodity has drifted to a one-month low but remains 30 per cent above April's 10-year low of $US46.70 a tonne.
Earlier in the week ANZ added to the wave of pessimism from analysts, labelling iron ore as a prime short option for traders after the recent rally "ran too far".
The bank's analysts expect the commodity will backtrack to $US53 a tonne over the next three months.
Source: Business Spectetor
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
![Steel Insights](/assets/images/news/coal-insights.jpg)
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
![Steel Insights](/assets/images/news/ICMW_Jan09.gif)
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
![Steel Insights](/assets/images/news/ISMW.gif)
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
![Steel Insights](/assets/images/news/SteelInsights.jpg)
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.