Declining Iron Ore Prices Mean More Headwinds For Rio Tinto

Goldman Sachs lowered its forecast for iron ore prices for 2013 from $144 to $139 in light of decreasing demand from China. Bloomberg also reported today that:

"Prices dropped 7.1 percent this year as China's industrial output had the weakest start to a year since 2009 and amid concern curbs on construction in China will reduce demand for the commodity used to make steel. Morgan Stanley said March 7 that iron ore had peaked and will decline over the rest of the year, joining analysts from Deutsche Bank AG to Credit Suisse Group AG in forecasting lower prices."

Rio Tinto (RIO) was down about 3.5% at 3162p on the London exchange Tuesday morning at 8:00 am, U.S. Eastern Time.


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Bob Johnson

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