Iron ore dropped on Wednesday, eroding Monday’s record surge, amid a revival in concern that global supply is outpacing demand.
Ore with 62 percent content delivered to Qingdao fell 8.8 percent to $58.02 a dry metric ton, according to e-mailed data from Metal Bulletin Ltd. The price dipped 0.2 percent on Tuesday after Monday’s 19 percent rally to the highest since June. The retreat was preceded by losses on futures in Singapore and China.
Iron ore powered higher on Monday after China’s government talked up its commitment to sustaining growth, bolstering the outlook for demand and spurring speculation that the advance had been reinforced as some investors rushed to close out bets on losses. The rally prompted banks from Goldman Sachs Group Inc. to Citigroup Inc. to say that the gains wouldn’t last, citing slowing steel demand in China and rising mine supply. The raw material has slumped for the past three years amid a worldwide surplus.
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