Iron ore drops to eight-week low as China credit gauge plunges

|By:, SA News Editor

Iron ore prices sink to their lowest levels in nearly eight weeks as a credit gauge in China plunged, adding to worries about slowing demand.

China’s broadest measure of new credit slumped in July to the lowest level since the global financial crisis; prices already had tumbled 31% YTD as mining companies increased output, pushing the market into a glut.

BHP -0.8%, RIO -3.5%, VALE -0.2% premarket.