05.11.2015 - Here’s why iron ore prices aren’t rising anytime soon
Iron ore prices are unlikely to stage a decisive recovery anytime soon as a supply glut continues to flood a market hit by slowing demand, sending prices to four-month lows this week, analysts say. Seen as a key gauge of the global economy, the raw material used in steel production is under heavy pressure as construction activity slows in largest consumer China. Normally, that would spur companies to curtail production. Except, companies are increasing output as prices remain above their production costs. "Prices will continue to fall because of economies of scale enjoyed by miners due to the large production volumes," said Mohd Taufik, who manages the over-the-counter trading desk at the Singapore-based brokerage Phillip Futures as a business development manager...............................................Full Article: Source
Print