By Rhiannon Hoyle
SYDNEY--Iron ore crashed to a fresh six-year low after China
lowered its economic growth forecast, reigniting concerns about the
country's future appetite for the steelmaking ingredient at a time
when supplies are already outpacing demand.
The price of iron-ore shipped to China fell 4.5% late Thursday,
to US$59.30 a metric ton, according to data provider The Steel
Index. That's the lowest value recorded since March 2009, when the
benchmark price slinked as low as US$59.10 a ton.
China's 2015 growth target of 7%--down from last year's goal of
about 7.5%, and actual growth of 7.4%--has raised concerns over the
outlook for demand from the country, which buys three in every five
tons of iron ore traded by sea, said Commonwealth Bank of Australia
analyst Vivek Dhar.
Australia and New Zealand Banking Group said prices could fall
further, as Beijing also pushes measures to curb pollution from
heavy industry and overcapacity in its steel industry.
Iron-ore prices have fallen sharply in recent times as supply
from new and expanded mines outpaced demand. The commodity halved
in value last year as big Australian miners such as BHP Billiton
Ltd. and Rio Tinto PLC hiked production to record rates.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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