Iron Ore

Fears that a fading Chinese economy would cause further harm to an already suffering base metals market are now panning out.

The latest update on global steel markets by industry researcher MEPS reads like a horror novel.

Macarthur scored no less than four downgrades from five reporting brokers this morning.

But not all brokers are convinced.

Economists at the World Bank are dominating global headlines today. No surprise since they called the immediate end of the Commodities Super-cycle.

ANZ Bank expects coal prices to continue to weaken as oil prices move lower and demand stays weak.

Now that BHP has scrapped its bid for Rio analysts have been released from the shackles of 12 months of research restriction.

Global steel industry conditions continue to worsen and steel industry consultant MEPS has lowered its global price forecast by 15%.

Steel’s fall from record highs to below production cost in just four short months may mean the worst is over.

Reduced demand and buyers reneging on contracts have sent prices lower among the bulk commodities and brokers have adjusted their expectations accordingly.