The iron ore market fell into the power of the bear trend

The slowdown of economic growth in China, the largest consumer in the world of metallurgical raw materials, had an extremely negative impact on the growth of demand for iron ore. Today, more than 62 percent of $ $ 126, which is 1.3 percent less than yesterday and 20 percent less than in February this year, is given more than 62 percent.

Raw materials including metals were in the grip of a bear trend for the first time in 2013. Data on the Chinese economy, published in April, could even bring down the price of gold. "This is a response to a recent report on China," says Australia & New Zealand Banking Group Ltd. (Anz) Natalie Rampono, "Bear market in terms of demand."

Raw materials will fall further, as the offer will increase, says BHP Billion Ltd. General Manager. (BHP) Alan Chirgvin. A cheap offer from Australia and Brazil will replace more expensive products.

The second largest mining company in the world of Rio Tinto expects this year to reduce production and administrative costs of $ 2 billion, introducing new technologies into production and, in particular, the new MCI mills 2 . This was announced by the general director of Rio Tinto Sam Walsh. “I can say that we began to cut costs totaling $ 2 billion,” he says. However, the company did not abandon plans to increase the extractive capacities by iron ore in Pilbar (Australia) to 290 million tons per year in the second half of this year and then up to 360 million tons if the shareholder council approves these undertakings.