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Iron ore company of horror - the price of the products decreases

Iron ore company of horror - the price of the products decreases

A recovery in the market for such products was a special case. And it warned all analysts, the Central Bank. Even mining companies joined the General condition.

Shares of major global ore production decreased significantly on Wednesday. Because of falling prices again fell below ninety dollars per ton. Because of unstable demand in China and huge stockpiles at ports.

Lower than it is now, prices was last observed in the second week of February. Sector in low-grade ore has suffered even more significant losses. Raw material prices were less than five and a half percent. In monetary terms this amounts to less than sixty dollars per ton.

Long-term contracts with deliveries in China fell into a bear market. On one of the exchanges futures fell by more than six percent. Thus in early deals set a new low of the month.

Shanghai steel also is in limbo. Wednesday recorded a maximum fall of 2017. Contract Sjiix Asiaclear in Singapore for four days of falls.

Of course drop is not reflected on the producers. Shares of the first ratings on iron ore producer fell by almost a cent. Ríotinto, the second-ranking supplier in the world, suffered losses in the stock. On the stock exchange in Sydney he lost more than two percent of their value. The London stock exchange brought Ríotinto the loss of more than half a percent. The value of the shares, Biache Billiton also declined. In Australia it dropped by nearly three percent.

The situation commented the Shanghai trader to Reuters. Anonymous said that strong changes in basic principles have not suffered. The demand season is still relevant in connection with the weather. For the most part in China rather warm, and to continue construction projects.

The Central Bank of Australia and analysts were informed about a similar situation. Even mining companies said the demand is not stable. They believe that there is a chance to lower prices through excess demand. Must be connected to a supply of young enterprise and to increase production through them. Candidates among companies for new deliveries a lot. These include the Australian company Roy hill and Minas Rio, relevant to the Corporation Anglo American. Of course we can not discount some of the Brazilian company С11Д.

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