iron price, page-10

Morgan Stanley Says Worst Is Over
Dec 31, 2014 9:50 AM ET

Iron ore is poised to cap the biggest annual decline in at least five years as surging supplies from the world’s biggest producers outstrips demand growth in China, with the raw material dropping for four straight quarters in 2014.

Ore with 62 percent content delivered to Qingdao, China, lost 47 percent this year to $71.15 a dry metric ton yesterday, according Metal Bulletin Ltd. The commodity fell to $66.84 on Dec. 23, the lowest level since June 2009, before rebounding with four daily gains to complete the longest run of advances since July. This month prices are just 0.2 percent lower.

“In terms of price downside, the worst is probably over,” Tom Price, an analyst at Morgan Stanley in London, said by e-mail. “The major factor that undercut ore prices in 2014 was the Australian-led supply surge.”