Iron ore on Monday dropped to record lows

Moscow. November 30. Iron ore on Monday dropped to record lows, reported the Agency Bloomberg.

Quotes contracts for ore with 62% content of iron delivery to the Chinese port of Qingdao fell by 3.4% to $42,97 per ton, according to Metal Bulletin. This is the lowest mark since the start of data collection in may 2008.

The price of the most actively traded futures in Singapore traded below $40 per ton for the first time since the start of trading in April 2013. The January contracts fell by 2.7% to $39,67 per ton.

On the Dalian commodity exchange quotations ore for delivery in may fell by 3% and finished trading at the level of 293,5 yuan ($45,88) per ton, also a record low.

The economic slowdown in China may lead to reduced demand, while the world’s largest manufacturers of ore (Australian BHP Billiton and Rio Tinto Group, and Vale Brazilian) continue to increase production.

Analyst At Axiom Capital Management Inc. Gordon Johnson expects to save in iron ore prices below $40 per ton due to low demand from China and rising supply.