- Mining stocks are having a rough ride today as the pace of growth slows in China's GDP and industrial production, and Goldman Sachs comes out bearish on copper and iron ore prices.
- Proclaiming "the sunset of the Iron Age starts in 2014," Goldman believes the steel intensity of the Chinese economy will be on a downward trend from 2014 onwards following a decade where steel production growth outpaced GDP growth.
- Some indicators already point to lower rates of steel production growth, the firm says; Chinese steel-making capacity is near its peak, and a greater focus on environmental regulations is driving the closure of an increasing number of blast furnaces.
- Goldman expects Iron ore to fall to $108/ton in 2014 and $80/ton in 2015.
- CLF -6.1%, RIO -3.2%, VALE -4%, FCX -1.9%, BHP -1.6%.