Barclays report puts iron ore in bear grip
Iron ore's descent into bear-market territory may herald further weakness, with Barclays pinning the blame for the slide on lower steel demand in China driving a shift from mills toward lower-quality ore and raising the prospect of a drop into the $50s.
Ore with 62% content in Qingdao fell 1% to $74.71 a dry tonne on Monday, according to Metal Bulletin, following a 6.8% drop on Friday that pushed the commodity into a bear market from a February peak. Earlier in Asia, futures in Dalian sank to the lowest since November, and those in Singapore traded below $72.
Iron ore is in retreat after a procession of negative outlooks, with Barclays among banks saying that gains were unsustainable, along with Australia's central bank and even some mining companies.
There's concern that curbs in China may hurt steel consumption in the top user, as well as forecasts that a further expansion in mine supplies from Brazil, Australia and China will undermine prices. Steel in China has also sagged.
Ore with 62% content in Qingdao fell 1% to $74.71 a dry tonne on Monday, according to Metal Bulletin, following a 6.8% drop on Friday that pushed the commodity into a bear market from a February peak. Earlier in Asia, futures in Dalian sank to the lowest since November, and those in Singapore traded below $72.
Iron ore is in retreat after a procession of negative outlooks, with Barclays among banks saying that gains were unsustainable, along with Australia's central bank and even some mining companies.
There's concern that curbs in China may hurt steel consumption in the top user, as well as forecasts that a further expansion in mine supplies from Brazil, Australia and China will undermine prices. Steel in China has also sagged.
