Iron ore continued its decline this week by dipping below $70/dry metric ton, a price it has not seen since 2009.
The decline in price is due to an increase in supply from Australia and Brazil, the two largest global exporters, and weakening demand from China, the world largest consumer of the commodity.
This latest move has the price heading for a 13-percent loss so far in November. Chinese iron ore demand has slowed simply due to the slowing of their overall economy.
The cutting of interest rates by China’s Central Bank last week for the first time since 2012 paints a bleak picture for China’s economy in the short-term. The price of iron ore will likely continue to decline until a robust pickup is seen in the Chinese economy.
Highlighted below are two ETFs that have been affected by the decline in iron prices and are attempting to find a bottom.
The Market Vectors Steel ETF (NYSE: ...
/www.benzinga.com/etfs/sector-etfs/14/11/5037510/drop-in-iron-ore-hitting-mining-etfs alt=Drop In Iron Ore-Hitting Mining ETFs>Full story available on Benzinga.com
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