Iron Rout Seen by Andy Xie Extending to $30s as Miners Climb
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The iron ore rout isn’t done yet and the raw material will extend declines into the $30s a metric ton this year, according to Andy Xie, an independent economist who predicted a collapse in prices in February.
Steel demand in China is shrinking while iron ore supplies are still rising, Xie, a former Asia-Pacific chief economist at Morgan Stanley, said in an interview from Hong Kong on Wednesday after benchmark prices plunged a record 10 percent. Iron ore rebounded 9.9 percent on Thursday. The slump in China’s stock markets, which showed a speculative bubble was bursting, had accelerated declines, according to Xie.