Arab Today, arab today iron ore plunges as china rout hurts commodity markets
Last Updated : GMT 14:10:52
Arab Today, arab today
Arab Today, arab today

Iron ore plunges as China rout hurts commodity markets

Arab Today, arab today

Arab Today, arab today Iron ore plunges as China rout hurts commodity markets

The fall in iron ore and other commodities comes
Sydney - AFP

Iron ore prices plunged to fresh six-year lows Thursday as contagion from China's stock market rout hurt commodity markets, with resource-heavy economies like Australia bearing the brunt.

The spot price of the commodity used to make steel took its biggest one-day hit ever overnight, falling 10 percent to $44.59 a tonne, analysts said, as demand in key market China continues to shrink. Prices were last at this level in May 2009.

At this level, most Australian miners would be producing at a loss, with the exception of low-cost giants like Rio Tinto and BHP Billiton.

Even the majors are feeling the pressure, with shares in both BHP and Rio trading near yearly lows on Thursday.

"The risk from Chinese equities markets is clearly impacting commodities markets," IG Markets strategist Evan Lucas said in a note on "commodities contagion".
"Iron ore has just logged its worst trading day on record. The steel price in China is now cheaper per tonne than cabbage."

While copper jumped as the US dollar slipped, oil prices were also on the slide, with US benchmark West Texas Intermediate falling 68 cents to $51.65 a barrel on Wednesday, its fifth day of losses.

Many agricultural commodity prices were also weaker, including cotton and wheat.

The fall in iron ore and other commodities comes as China's share market remains in free fall, even in the face of Beijing's efforts to calm investors.

China has suspended trading in more than half of the country's listed stocks, banned short selling and new listings, and enlisted the help of the country's major stockbrokers through a huge stabilisation fund.

But the moves have so far failed to stop the bleeding.

ANZ analysts also linked the commodity pressure to the Chinese market, and noted that "while there are some signs of prices stabilising, any sustained recovery in commodity markets is unlikely in the short term".

Iron ore is Australia's largest export and government revenue has taken a hit as the price dives.

Last month, Canberra lowered its forecast for iron ore prices to $54.40 a tonne for this year and $52.10 in 2016 as China's output of steel weakens.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today iron ore plunges as china rout hurts commodity markets Arab Today, arab today iron ore plunges as china rout hurts commodity markets

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today iron ore plunges as china rout hurts commodity markets Arab Today, arab today iron ore plunges as china rout hurts commodity markets

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday