Iron ore glut to overwhelm weak China demand: Goldman

Singapore

RISING seaborne iron ore supplies over the next two quarters will probably overwhelm weak demand from mills in China, according to Goldman Sachs Group Inc, which said that a global glut was entering its second year.

While housing starts in China have recovered and infrastructure has overtaken property to become the largest market for steel, an improvement this half may not be strong enough to support iron ore, the bank said in a report.

Prices are seen dropping over the next four quarters, from US$49 a tonne through September to US$44 by the April-to-June period of 2016, a…