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Chinese Iron Ore Prices Plunge After CISA Warns Of Persistent Overcapacity
Having rebounded along with practically every other risk-asset class in the world over the last month or so, Chinese Iron Ore futures are collapsing tonight. Despite the promise of Chinese LTROs expanding credit (just like they didn't in Europe), iron ore prices are down around 4% - the biggest drop in over 2 years - to as low as CNY419 (or around $62) as China Iron & Steel Association warns that overcapacity in the seaborne iron ore market will persist through to at least 2019 as the world’s largest suppliers expand production further.
Iron Ore prices are down the most in over 2 years...
“Low-cost seaborne supply entering the market is not only displacing high-cost Chinese production, but also high-cost seaborne supply,” Alan Chirgwin, BHP iron ore marketing vice president, told the conference. Supply will rise by about 100 million to 110 million tons this year, exceeding modest demand growth of about 30 million to 40 million tons, he said.
Major producers remain intent on expansions and a battle for market share is under way as miners attempt to reduce their costs faster than prices are dropping, according to Credit Suisse Group AG.
Source: Bloomberg
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Is this the US destablising Chinese markets like they tried to do to Russia ??
A destabilized China only has to sell its US treasuries..
There's strong support at zero.
Are you sure ?
Negative steel prices would be extremely bullish.
Sell US paper promises? Then they should get down to it and pop some damn bubbles.
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
Time to go long YANG?
Keep in mind that YANG is going to reverse split 10:1 on May 20.
And UVXY is going to Reverse split, again, on May 20 as well.
https://www.youtube.com/watch?v=8QfSzgV1q5g
Buh buy Australia.
Hi eropoint,
I'm in Western Australia, I'm looking to buy some rental properties in Karratha to profit from the bounce back my Government and economists anticipate occurring any day now, I'm in the lucky country so should be no worries.
Karratha properties are getting pretty cheap. I think you would struggle to build a house at the price that some are listing at. And still there is little demand for them.
Sometimes when I'm bored I call up Karratha and district real estate agents and ask them to email me any property that they think is a good buy, they are very keen.
http://www.dailytelegraph.com.au/realestate/news/property-prices-in-once...
http://market-guru.co.uk/looking-for-a-pause-in-amzn/ Profit taking opportunity on AMZN.
“Low-cost seaborne supply entering the market is not only displacing high-cost Chinese production, but also high-cost seaborne supply,”
Damn! !!1!!!11 There are still capitalistic markets!!!11!