- Iron ore as a commodity faces long term oversupply.
- The shift to a service oriented economy lowers Chinese steel demand growth.
- Short term euphoria makes iron ore and related assets great for trading.
Iron ore is the world’s most mined and commonly used metal as 98% of it is used to make steel. As steel is mostly used for infrastructure and building it is not surprising that China is the world’s biggest consumer of iron. China produces 50% of the world’s steel output and 47% of the world’s iron ore. More →