The dream is over for iron ore

|By:, SA News Editor

An article in the Sydney Morning Herald says iron ore prices, already -28% over the past few weeks to $70, could fall to $45-50 a tonne.

Big producers including BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO) have not been in denial about the iron ore price bubble, warning investors for more than a month that the recent prices have been something of a mirage.

While China demand remains solid, new supply coming on from Vale (NYSE:VALE) and others should further squeeze pricing.

With its dependence on miners, expect the Australian markets to continue their descent.

ETFs: EWA, JJC, IAF, DBB, JJN, AUSE, JJU, CPER, BOM, JJT, BOS, RJZ, LD, NINI, BDD, FOIL, JJM, CUPM, BDG, FAUS, LEDD, UBM, HEVY, QAUS, HAUD, DBAU