26.10.2015 - What Iron Ore Reveals About China’s Growth
Between its peak in February 2011 and low of April 2015, the price of iron ore has plunged by approximately 75%, far outpacing declines in other industrial metals. Copper prices, for instance, are down “only” by about 52% the past year, while aluminum and lead prices are down by 40%-45% from their highs. Prices for steel, of which iron is the primary component, are down by 52% from their recent highs. Furthermore, iron ore has a low correlation to other metals, including copper and hot rolled steel, making iron ore a potentially interesting portfolio diversifier for those who have exposure to other metals. Although iron and copper are both used as industrial metals, they have very different supply and demand dynamics. First, the geographic locations of iron and copper vary greatly...............................................Full Article: Source
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