Iron-ore succumbs to bear market and may extend slump into $50s

Iron-ore has slumped back into a bear market after posting the biggest weekly loss in 16 months amid concern that record demand in China may ease off as mills enact winter output cuts just as data from the top user signals that the economy may be cooling. Losses have probably been driven by “the realisation that if, as planned, large amounts of steel capacity are taken offline during the winter months, this will mean lower demand for iron-ore,” Caroline Bain, chief commodities economist at Capital Economics, said by email. “August activity and spending data suggested that the Chinese economy is starting to slow.”