Iron ore plunges another 5% in biggest daily drop since March
Jul 2 2015, 15:49 ET | By: Carl Surran, SA News Editor Contact this editor with comments or a news tip
Iron ore prices fell more than 5%, suffering the largest one-day percentage loss since March and falling ~15% since hitting a multi-month high of $65.61/metric ton on June 11.Analysts believe a prolonged wet season in the Pilbara region of Western Australia affected output, in particular at mines owned by Rio Tinto (RIO +0.6%), the world’s no. 2 producer of iron ore.Traders also noted shipments from Australia and Brazil, another major supplier, have started to increase as the weather improved, and a further decline in Shanghai Rebar futures.ANZ says iron ore is likely to fetch $53/metric ton in coming months, while Goldman Sachs is even more bearish, believing iron ore will average $49 in Q3.Also: BHP +2%, VALE +1.3%.
http://seekingalpha.com/news/2612185-ir ... ince-march