China’s Iron Ore Inventories Post Biggest Decline in Two Years; Yuan Observation; Pro-Cyclical Stupidity
January 14, 2015
The Australian Business Review reports Iron Ore Price Reverse Gathers Pace, With New 2 percent Decline At the end of the latest offshore session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US68.50 a tonne, down 1.9 per cent from its previous close of $US69.80 a tonne, and just 4 per cent above the five-and-a-half-year low of $US65.70 reached just prior to Christmas. At the start of the year optimism in the iron ore sector was beginning to grow as the commodity staged a recovery of almost 10 per cent from its December trough, but once again fears of a dead cat bounce are surfacing as oversupply worries dampen investor interest. Iron ore lost about 50 per cent over the course of last year as surging supply could not be met by a similar lift in demand and expansion plans from major producers threaten to exacerbate the oversupply situation in 2015
