Iron Ore Brings New Chance For Mining Industry

Iron ore fell to its lowest level of the year and copper plunged more than 6 per

cent as Chinese investors led a wave of selling across industrial commodities markets amid concerns of a global economic slowdown.

The sharp falls came as the Euro zone debt crisis entered a crucial week of negotiations. At the same time, however, investors are concerned by the possibility of a hard landing in China, which accounts for more than 40 per cent of demand for many industrial metals.

Those fears have been exacerbated by the sharp drop in spot iron ore prices. Benchmark Australian iron ore with a 62 per cent iron content delivered to China, which had been relatively stable amid the commodities sell-off over the past few months, fell to $145 per ton, down 20 per cent from an early September peak of $183.

Duncan Hobbs, analyst at Macquarie, said the fall in the iron ore spot price was "reinforcing perceptions of a slowdown of the Chinese economy" and was affecting sentiment of other industrial metals in spite of bullish supply and demand fundamentals, especially in copper. China this week reported GDP growth of 9.1 per cent in the third quarter the lowest in two years.

Analysts said large steel mills in China were reporting declining orders and that aggregate steel output should probably be reduced in the short term.

Negative sentiment in China also weighed on industrial metals. Copper for delivery in three months at the London Metal Exchange, the bellwether of the base metals markets, fell as much as 6.5 per cent to a low of $6,710 a ton. That was slightly more than a 14-month low of $6,635 touched this month, and the lowest close since July last year.

Prices of copper and steel on the Shanghai Futures Exchange seen as the clearest indicator of sentiment in China have fallen even more sharply than global market prices in recent days. SHFE rebar a form of steel bar used in construction for delivery in three months has tumbled 20 per cent since September's start, and on Thursday fell to within reach of a two-year low.

Henan Hongxing Mining Machinery Co., Ltd. is a professional ore-dressing equipments and sand maker manufacturer in China, who can provide the most suitable ore-dressing equipments for customers.

by: jocelyn

POST COMMENT

Super Talent Tests New Green Line Of Ddr3 Apple Memory Beautiful Ways To Save Energy With Beautiful Lighting Payday Loans New Zealand: Becoming Sole Support Before Payday How Caterers In New York Could Make Your Wedding Special Demonstration Of Improved Indoor Air Quality In New Buildings Understanding What Is Solar Energy Systems Any News About The New Kindle Fire? Umbrella Company Feeding Frenzy As Uk Government Implements New Rules Apartments For Sale New York Is Make Home Dream True For Everyone Finding New It Jobs Vitamin D And Recent New Treatment To Treated A Malignant Cancer Kiss Tickets - Kiss Kicks Off Promotional Campaign For New Single Increase Your Self Confidence With The Help Of A New York Plastic Surgeon