Iron Ore Sinks as China Ushers in Slower Growth

   By Rhiannon Hoyle 
 

SYDNEY--Iron ore crashed to a fresh six-year low after China lowered its economic growth forecast, reigniting concerns about the country's future appetite for the steelmaking ingredient at a time when supplies are already outpacing demand.

The price of iron-ore shipped to China fell 4.5% late Thursday, to US$59.30 a metric ton, according to data provider The Steel Index. That's the lowest value recorded since March 2009, when the benchmark price slinked as low as US$59.10 a ton.

China's 2015 growth target of 7%--down from last year's goal of about 7.5%, and actual growth of 7.4%--has raised concerns over the outlook for demand from the country, which buys three in every five tons of iron ore traded by sea, said Commonwealth Bank of Australia analyst Vivek Dhar.

Australia and New Zealand Banking Group said prices could fall further, as Beijing also pushes measures to curb pollution from heavy industry and overcapacity in its steel industry.

Iron-ore prices have fallen sharply in recent times as supply from new and expanded mines outpaced demand. The commodity halved in value last year as big Australian miners such as BHP Billiton Ltd. and Rio Tinto PLC hiked production to record rates.

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