Iron ore may drop below US$60 as China mills cut steel output in Feb

Singapore

IRON ore risks sinking below US$60 a tonne in the next two weeks, deepening a bear-market rout, as mills in China cut steel production before and during a national holiday, curbing demand as supplies expand further.

Prices may drop to less than US$60 as factories and businesses shut for the week-long Chinese New Year break, and rebound after that, according to UBS Group and Shenhua Futures. China is the largest iron ore importer and biggest steelmaker, accounting for about half of global production.