Iron ore is poised to decline through the end of March as China, the world’s largest user, has a week-long holiday next month and mills buy more domestic supplies, Australia & New Zealand Banking Group Ltd. said.
Tugboat workers at Australia’s Port Hedland approved work stoppages amid a dispute over wages and annual leave, risking disruption to iron ore shipments to China from the world’s largest bulk-export terminal.
Iron ore futures in Singapore traded below $100 a metric ton for the first time since the contract started last year amid concern that slowing demand in China, the world’s biggest user, would worsen the global seaborne glut.
Iron ore will probably fall in the next two months as prices near the highest level since October 2011 discourage buyers in China, the world’s largest importer, according to Australia & New Zealand Banking Group Ltd.
Thermal coal may outpace oil and gas this year, rising more than 30 percent to a record, as demand from China and India accelerates and Japan boosts imports to make up for nuclear power lost after the March earthquake.