Business & Finance
Iron Ore’s Drop Below $90 Tests High-Cost Supply as Losses Mount
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Commodities Iron Ore’s Drop Below $90 Tests High-Cost Supply as Losses Mount Iron ore’s fall below $90 a ton has pushed as much as 170 million tons of production into losses, but prices will need to remain depressed for longer before enough supply exits to tighten the market, according to UBS Group AG. Spot prices below that level are broadly consistent with the 90th percentile of the global cost curve, the bank’s co-head of Australian mining research Lachlan Shaw said in emailed comments on...
Commodities
Iron Ore’s Drop Below $90 Tests High-Cost Supply as Losses Mount
Iron ore’s fall below $90 a ton has pushed as much as 170 million tons of production into losses, but prices will need to remain depressed for longer before enough supply exits to tighten the market, according to UBS Group AG.
Spot prices below that level are broadly consistent with the 90th percentile of the global cost curve, the bank’s co-head of Australian mining research Lachlan Shaw said in emailed comments on Wednesday. While lower Capesize freight rates in recent weeks have reduced charges for delivering ore into China, elevated diesel prices and currency moves mean costs haven’t shifted significantly.