Nov
03
Commodity Rout Has Room to Run as Fund Sees Oil, Iron at $40
By-
Faltering Chinese demand, supply may help prolong gluts
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Iron ore may tumble to $35 a ton as miners’ costs reduced
The rout in commodities is set to get worse as resilient supply and faltering Chinese demand will see global gluts persist, sending oil and iron ore below $40, according to Merchant Commodity Fund.
Prices are still trying to find a floor with excess supply in almost every commodity, said Michael Coleman, managing director of RCMA Asset Management Pte, which runs the $210 million fund. Any rally in raw materials will be probably short-lived as demand isn’t improving and production cuts are insufficient to stem surpluses, he said in an interview…
Commodity Rout Has Room to Run as Fund Sees Oil, Iron at $40
