Reuters reports Wednesday that iron ore futures fell sharply as investors are cashing in on recent gains. The price of Benchmark Australian ore fell 4% on Wednesday, following a 6% drop in Chinese iron ore futures. The Financial Times writes that after the steelmaking ingredient rose to US$90 a ton this month, concern is growing the rally has reached its limit. Goldman Sachs analysts expect the iron ore prices to hold between US$80 and US$90 through April, but see the possibility of a downturn after that.
A truck is loaded with iron ore at a port in Nantong, Jiangsu province May 5, 2013. Photo: Reuters
Speculators cut iron ore bets
Traders cashing in despite recent pickup in demand