Iron ore at record low on China mill closures
(Follow @MinesGuru on Twitter for important updates)
Reuters reported that iron ore hit a record low below USD 60 per tonne and posted its biggest weekly fall since mid November as China's anti pollution battle threatens to shut more steel mills, cutting demand.
The closure of steel mills in an industrial city in eastern China, which sparked fears of a wider crackdown, fuelled the latest selloff in iron ore, now at its weakest level since March 2009 and only cents away from the lowest since records began.
Australia and New Zealand Bank said that further downside risk for iron ore is likely as the market comes to terms with pollution control and overcapacity measures in China.
Iron ore for immediate delivery to China's Tianjin port .IO62-CNI=SI tumbled 1.9% to USD 58.20 per tonne, its lowest level since The Steel Index began compiling daily prices in late 2008. On Thursday, it fell 4.5% on the day its steepest single day loss since falling more than 8% in March last year. It has fallen more 8 percent this week.
The slide followed a 4 percent fall in Dalian iron ore futures on Thursday with the closure some steel mills in Linyi in Shandong province for failure to meet stricter environmental standards.
The most traded September iron ore on the Dalian Commodity Exchange fell another 2.6% to close at CNY 447 per tonne on Friday, after touching a contract low of CNY 444 per tonne.
In the physical iron ore market, buying interest in China was subdued although there was talk of a 62% Australian iron ore cargo being sold at USD 58 per tonne in a private deal.
Source – Reuters
