Iron ore is Clarksons' 'least favourite' commodity

Singapore

IRON ore faces renewed pressure and prices may sink back below US$50 a tonne before year-end as rising supply offsets an improvement in Chinese demand, according to Clarksons Platou Securities Inc, which dubbed the raw material its least favourite commodity.

There had been a pick-up in exports last month after a weak performance in July, said Jeremy Sussman, an analyst at Clarksons Platou in New York. Even as steel output in the largest supplier is set to remain resilient this year, iron ore may sink into the high US$40s, he said. Benchmark spot prices compiled by Metal Bulletin are at US$58.97 a dry tonne.