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29-05-2014, 08:50 AM
Iron all price slides further
MITCHELL NEEMS BUSINESS SPECTATOR MAY 29, 2014 8:37AM
THE iron ore price has fallen further as fears over weakened steel demand in China continue to weigh on the commodity.
Benchmark iron ore for immediate delivery to the port of Tianjin in China is trading at $US96.80 a tonne, down from $US98.10 in the previous session.
Last week the iron ore price crashed through the $US100 a tonne mark for the first time in nearly two years and it currently sits at its lowest point since September 13, 2012 when it traded at $US96.10 a tonne.
Credit Suisse this week warned that even if iron ore manages some stability in the near term — or even modest gains — the second half of the year is likely to see the commodity price fall below 2012’s low of $US87 a tonne.
The investment bank sees few positives in China’s ferrous sector currently, posing the question as to what extent these negatives are already reflected in the price.
Australian exporters of iron ore — the cheapest in the world — still have headroom for exports at current prices, but some smaller companies will likely have to reconsider planned expansions if the price continues to slide.
It has been a volatile year for the commodity, dropping more than 25 per cent since January 2.
In March, the iron ore price charted its largest one-day fall in four years to hit $US104.70 a tonne. It later rallied to $US119.40 by early April, before steadily easing.
MITCHELL NEEMS BUSINESS SPECTATOR MAY 29, 2014 8:37AM
THE iron ore price has fallen further as fears over weakened steel demand in China continue to weigh on the commodity.
Benchmark iron ore for immediate delivery to the port of Tianjin in China is trading at $US96.80 a tonne, down from $US98.10 in the previous session.
Last week the iron ore price crashed through the $US100 a tonne mark for the first time in nearly two years and it currently sits at its lowest point since September 13, 2012 when it traded at $US96.10 a tonne.
Credit Suisse this week warned that even if iron ore manages some stability in the near term — or even modest gains — the second half of the year is likely to see the commodity price fall below 2012’s low of $US87 a tonne.
The investment bank sees few positives in China’s ferrous sector currently, posing the question as to what extent these negatives are already reflected in the price.
Australian exporters of iron ore — the cheapest in the world — still have headroom for exports at current prices, but some smaller companies will likely have to reconsider planned expansions if the price continues to slide.
It has been a volatile year for the commodity, dropping more than 25 per cent since January 2.
In March, the iron ore price charted its largest one-day fall in four years to hit $US104.70 a tonne. It later rallied to $US119.40 by early April, before steadily easing.