Iron ore prices unlikely to rise soon, top China economic planning group says

|By:, SA News Editor

Iron ore prices are unlikely to rise over the next three months from their current trough, the lowest in nearly two years, China's top economic planning agency says.

"The period of China's high steel demand has passed, and iron ore demand is now rising at a slow pace of 3%-4% annually," the agency says.

Iron ore prices sank below $100/metric ton this week for the first time since September 2012, down 25% YTD to a low of $97.

Iron ore prices depend almost entirely on demand from China, which consumes two thirds of global ore supply and makes nearly half the world's steel.

Iron ore miners are broadly lower: CLF -3.6%, RIO -2.5%, BHP -1.2%, VALE -0.7%.