Iron ore prices are set to slump in the second half as more steel companies in China will probably go bankrupt, hurting demand in the world’s largest user just as supply expands, according to Standard Chartered Plc.
China’s slowing economy and tougher government anti-pollution efforts are taking a toll on its steel mills, rattling the world’s biggest producer of the alloy and flashing worries of a potential downturn in the global iron-ore trade.
When Swiss prosecutors knocked on the door of DTEK Trading SA’s Geneva headquarters in February, they were on the trail of Rinat Akhmetov, Ukraine’s richest man. The billionaire, who controls the coal broker, was 2,000 miles away in Donetsk, Ukraine, brokering peace after protests had pushed Viktor Yanukovych, the country’s president -- and a longtime ally -- into exile.
Bearish interpretations of iron-ore stockpiles in Chinese ports are overdone, Macquarie Group Ltd. wrote in a report today, citing an analysis of inventory data at steel mills, ore miners and in ports.
All the excitement about the surprise 2014 rally in commodities must be making copper traders wonder if they’re living in the same year. Copper is down about 9.8 percent, the biggest drop among the main six materials on the London Metal Exchange.
Andre Boulet, chief executive officer of Inventys Thermal Technologies Inc. in Burnaby, British Columbia, holds up a 6-inch piece of charcoal, showing how light passes through toothpick-sized air shafts. He says the crevices in this filter offer a cheap way to capture carbon dioxide before it ascends into the atmosphere and haunts future generations.
The Chinese steel industry’s ability to survive 1 billion yuan ($161 million) of losses per month without more defaults is under threat as a slump in iron ore and the yuan undermines a key source of financing.
Iron ore climbed the most in seven months, trimming a quarterly drop, on speculation that China may speed up construction projects and take measures to counter slowing economic growth in the world’s largest buyer.