Bloomberg quoted UBS AG said iron ore prices down 30% this month are nearing a floor as Chinese buyers replenish stocks and shipments from India dwindle.
UBS analysts led by Sydney based Mr Tom Price said the price may rebound as much as USD 30 per tonne to near USD 150 a ton in coming weeks. The benchmark Asian price has dropped 16% this week heading for its biggest such decline on record.
UBS said “The scale & speed of this week’s correction has little to do with trade fundamentals. The reported collapse in trade liquidity instead suggests a buyer strike with consumers deferring purchases until prices stabilize.”
According to The Steel Index iron ore for delivery to the port of Tianjin in China a benchmark for Asia fell 5.7% to USD 120.20 per tonne recently. That’s the lowest since July 19 2010.
(Sourced from Bloomberg)