Iron ore close to falling into US$30-40 a tonne price range

Singapore

IRON ore may be on the cusp of dropping into the US$30s a tonne as the biggest producers expand supply and the onset of winter in China dulls demand that's been hurt by the slowdown in growth in the world's top user. Miners' shares retreated.

"The outlook remains grim for iron ore fines because end-demand from construction and manufacturing is uncertain," said Jessica Fung, an analyst at BMO Capital Markets in Toronto. "Steel inventories have been building."

Spot ore with 62 per cent content delivered to Qingdao fell 2.6 per cent to US$41.13 a dry tonne on Wednesday, a record low in daily prices compiled by Metal Bulletin Ltd dating back to 2009. It's dropped each day t…