Iron Ore Price Slump Continues; Market Woes Worsen Say Experts
Online, March 27, 2014 (Newswire.com) - It was not long back that a lot of companies like BEML suffered heavy losses because of the iron ore price slump that the markets faced. In the year 2012 iron ore prices were hit because of innumerable reasons, one of the leading one being decline in demand. Vaman Kumar reports that in 2012, the average spot prices rage between US$150 per metric ton.
The fall was quite significant as compared to the spot prices of the year 2011. Global iron ore prices are facing a downward trend in 2014 as well. NMDC, an Indian iron ore producer, however has not faced too much loss because of this slump. It is reported that the stocks of this company may not witness heavy losses. Moreover, there is good news too, which is being reported by Rebar. As per a recent report, which is based on iron ore price charts for March 19, 2014, "Rebar average has bottomed and stability has returned to wider markets. The Baltic Dry capsize component rocketed another 5.5% yesterday and is signaling the return of buyers of some kind. Reuters' coverage, too, is less bearish."
On the other hand, China is pushing the prices of the ore down. Anticipation of a slowdown in China have caused prices to hit rock bottom, which is said to be an 18-month low. Five years before too, the glut in China was one of the leading causes of the falling prices of iron ore. Australia too has seen its bad days because of heavy downfall in iron ore prices over the years.
Amidst the tremendous losses that various iron ore based companies and the allied ones too those have been affected, Australia's wealthiest person has turned heads by defying the norms and signing a sealed a $7.9 billion finance deal, which will be used to create a $10 billion mine. As per a report, "WA Premier Colin Barnett says the deal is excellent news for the state. This is a $10 billion project to produce 55 million tonnes, a new railway, port expansions and the like. And it's one of several big projects still taking place in Western Australia, so it's great news."
Vaman Kumar , an industry expert who has been studying the trends that iron ore has been exhibiting over the years says that in India while because of global conditions, the supply will remain restrained, the demand of the ore will be seeing an upward trend in the current year.