Don’t know whether it’s true or not but I can imagine that it is:
That has fuelled concerns over financial contagion as well as the knock-on impact on the world economy from a slowdown in the country’s property sector which consumes around a quarter of the world’s iron ore.
Evergrande’s obviously going bust, large parts of the sector are likely to follow, iron ore is well off the top and how much further to go?
Don’t forget, iron ore supply in the short to medium term is extremely inelastic with respect to price. You’ve actually got to shut down parts or all of the mine to reduce it. Therefore price is extremely elastic with respect to demand….