Iron ore prices head lower..
According to Salman Partners:
June 6, 2013
Iron Ore & Steel Down; "gloomy outlook"
Spot iron ore prices fell this morning, with a gloomy market outlook pervading after a three day rally, reports Metal Bulletin, quoting industry sources as suggesting "the overall trend is still downward" as "lackluster" steel market fundamentals will mean price rebounds are short lived and "with increasing supply in Australia and Brazil, iron ore prices could fall below [US]$100 per tonne cfr in a month or two". Bloomberg also reports that steel rebar futures in Shanghai fell as "a six-day decline in the stock market fueled wider concern that growth in China is slowing". Rebar futures on the Shanghai Futures Exchange have fallen 14% this year. Chinese steelmakers themselves are turning bearish, according to Reuters, acknowledging issues with industry overcapacity and slower than expected Chinese urbanization, which despite record production have depressed steel and iron ore prices.
SUCYN