|Published : 19 Apr 2017, 14:24:12|
Iron ore slumps
Iron ore has slumped by a third since hitting $94.5 a tonne two months ago, as steel production in China has continued to rise, fuelling concerns about excessive supply, according to a global media report Wednesday.
China’s steel output climbed 1.8 per cent in March to a record 72m tonnes, figures released on Monday showed, as mills ramped up production in anticipation of a seasonal pick-up in demand.
That in turn has started to weigh on prices. Shanghai rebar - a steel product widely used in construction - dropped to a 10-week low overnight, unsettled by Chinese house price data that showed a fourth straight month of slowing growth in March.
Iron ore’s sell-off has already hurt the share prices of major mining companies. Every $1.0 per tonne move in the price can affect hundreds of millions of dollars to the earnings of these companies.