Investors are fire-selling mining stocks, iron ore traders are losing money, and smaller miners are pulling back shipments because of falling iron ore prices driven by tumbling Chinese demand.
Even usual seasonal factors, such as lower Chinese steel demand ahead of winter, will have little impact on plunging prices that have sent the iron ore supply chain reeling, as the downward momentum caused by fundamental changes to China’s steel and iron ore demand gets under way, analysts say.
Iron ore, the darling of China’s post-pandemic economic recovery, is facing a reversal of fortunes, with prices sinking to just below US$100 a tonne late last week after scaling record heights of US$233 to $235 a tonne in May.
UBS issued repeated calls last week for investors to sell mining stocks, including those of Australian companies
Fortescue and Rio Tinto.
