A piece in the Australian Financial Review highlights a potential next leg down in iron ore.
Iron ore prices impact the Australian dollar so this is of note for AUD traders.
Link is here, the AFR may be gated.
In summary (and note, this is not 'breaking news' its been developing alongside the property sector woes in China):
- "The main driver of the fall in iron ore prices from mid-May was the steel output restrictions placed by Chinese policymakers, but what was distinct was, steel prices and margins stayed elevated because demand was still there," said Commonwealth Bank's mining and energy commodities analyst, Vivek Dhar.
- "But steel prices in China are now falling because sentiment in their property development space remains very weak. This declining demand for steel has finally weakened enough to weigh on prices and margins."
There is much more at the link above.
