Iron-ore prices posted their biggest one-month fall in almost eight years as China’s huge steel engine cooled and global shipments of the commodity rose.
The price fell 27 percent to $85.85 a metric ton by the end of August, the most since October 2011, according to S&P Global Platts. The collapse was triggered by global trade tensions after President Trump threatened to impose new tariffs on Chinese goods.
While the decline in prices eases pressure on steelmakers by reducing the cost of a key ingredient, it erodes profits of large miners.
August’s dive almost erased a rally that pushed the market as high as $126 a ton in July, although prices have edged up to $89.35 a ton in recent days.
Analysts are divided on where iron-ore prices head next.
Source: Wall Street Journal