Iron ore price tumbles

As Greece teeters towards a potential EU exit, commodity prices are also feeling the heat, driven in part by slower growth in China.

Rabobank’s Jane Foley.

JANE FOLEY, CHIEF CURRENCY STRATEGIST AT RABOBANK,

“Whilst we’re so focused on Greece which ultimately is a small world economy, there is of course a lot going on in China, which has perhaps been ignored.”

Iron ore prices fell to their lowest in more than two months on Friday.

It’s fuelling concern that China is awash with too much of the commodity, which is used to make steel.

As stockpiles build up, fresh shipments – mostly from Australia and Brazil are still arriving.

JANE FOLEY, CHIEF CURRENCY STRATEGIST AT RABOBANK,

“There does seem to be a very broad brush of oversupply of commodities right now. Certain of those, particularly iron ore and dairy and coal, a weakness of Chinese demand is certainly up there as a significant factor.”

Reuters data showed iron ore delivered to China stood at $55.80 a tonne, its weakest since late April.

Copper is also slipped on Friday and is expected to come under even more pressure in coming weeks.

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