Iron Ore Drops to New Low as China's Demand Hurt by Steel Cuts
- Prices seen by Standard Chartered testing $40 before year-end
- Low cost producers are still profitable: Citigroup analyst
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Iron ore sank to the lowest level in at least six years amid speculation that mills in China are cutting back steel output, hurting demand for the raw material while supplies from the biggest miners expand.
Ore with 62 percent content delivered to Qingdao fell 1.9 percent to $43.89 a dry metric ton, the lowest in daily data dating back to May 2009, according to Metal Bulletin Ltd. The commodity is headed for a third annual retreat, and Tuesday’s fall eclipsed the previous low of $44.59 set in July.