The global iron ore bear market deepened this week “on concern that low-cost production from Australia and Brazil will expand further while demand stumbles in China.” That from sources including Bloomberg.
“Supply is now outpacing demand, pointing to renewed price pressure,” said Gordon Johnson, an analyst at Wolfe Research LLC in New York. Iron ore may collapse significantly below the $47-a-ton low that was set earlier this year, he said.
Ore with 62 percent content delivered to Qingdao fell to $49.60 a dry ton today)(Tuesday) according to Metal Bulletin Ltd.
NOT EVERONE HURT
Even as prices drop, Australia’s top producers will generate more than A$615 billion ($459 billion) in revenue in the 10 years to 2024, surpassing the previous decade’s total say some.
Notice that this current slump in prices validates previous ALERTS from sources like Goldman Sachs Group Inc. UBS Group AG and Citigroup Inc. that iron ore prices will drop to less than $40 a ton in the final three months Of this year.
BACK TO THE FUTURE, so to speak?
The six years of effort to recover from the 2007/08 global recession has so far lead us back to where we globally where economicly back then.