CHINESE RESTRUCTURING
Extreme volatility looms for iron ore, mine developer warns
Perth — Iron ore markets are heading for a bumpy ride in the next couple of years, marked by price swings as the steel industry in China restructures, according to the developer of a planned $3.7bn mine in Australia. "Extreme volatility is going to be a hallmark of the market for at least a year or two," said Andrew Stocks, MD of Iron Road, whose partner in the mine, port and rail project is China Railway Group, the world’s second-largest infrastructure builder. Iron ore has swung from a bear to a bull market within three months, rebounding from a year low of $53.36 a tonne in June on a surge driven by mills in China boosting purchases to replenish inventories, with higher-grade ore in demand. This volatility was the result of the Chinese market moving to a cleaner, leaner production phase, said Stocks, who expects prices to average about $70 a tonne over the longer term. "You have got a fair bit of iron ore around the world," he said last week. This oversupply had led to record sto...
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