Iron ore -5% to near six-month lows

|By:, SA News Editor

The price of iron ore falls 5% to a near six-month low, slammed by a decline in Chinese steel prices and concern about a supply glut.

Benchmark Australian ore for immediate delivery into China was down $3.10 to $61.50/metric ton, Financial Times reports, and has slumped by a third since hitting $94.50 two months ago, as steel production in China has continued to rise.

“We maintain a bearish view on iron ore,” Citigroup analysts say, expecting prices to remain weak as an additional 70M-75M metric tons of supply from Australia, Brazil and India hits the market and demand growth in China slows.

In premarket trade: BHP -2%, RIO -1.3%, VALE -2.8%, CLF -2%.

Other relevant tickers: OTCPK:AAUKF, OTCPK:AAUKY, OTCPK:GLCNF, OTCPK:GLNCY, OTCQX:FSUMF, OTC:ANFGF