Author: Paul Ploumis13 Oct 2014 Last updated at 05:46:42 GMT
BEIJING (Scrap Monster): A slight decline in the economy of China has driven the iron ore prices to a five year low, and also the coal price to the lowest in the last six years. The arrival of shipments towards the country seems to be distant, at the period of economic slowdown in the country and the price of iron ore remains t0o be weak.
This year the economy of China has been full of trips and bumps. There was a slight rejuvenation of growth from the most expected 18 month low economies of the country, after the government took required measures, to make it sure that, growth takes place. But all the new budded hopes were pulled out raw, when the reports in the month of June showed that, the economy of the country is stumbling further and further.
The war on pollution and also fraud inventories by Beijing, hurt the hunger of the country for more commodities, due to the lack of finance. A trader based in Shanghai stated that the uncertainty in the price of iron ore brings up a sense of horror in the minds of traders, and in addition to that, iron ore showed its worst performance of all time this year. He further stated that, the local traders anticipate the government to bring out a loose grip on the laws in order to strengthen up local demand.