Chart of the week: iron ore plummets to a decade low

Iron ore, the main ingredient in steel, has suffered a nasty slump. Prices for iron ore delivered to the Chinese port of Qingdao have plummeted below $50 a ton (see chart), the weakest level since the data series began in 2008. Projecting the series further back suggests prices are at a ten-year low.

However, the flood of new supply from major miners such as Rio Tinto and BHP Billiton shows no sign of reversing just yet: they say they want to sell as much as possible for now, and would only start making losses if prices fall to $30 a ton.

Article continues below

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.