2014.11.0402:32:41UTC+00Iron ore falls behind falling demand in China for APEC meeting

Prices of iron ore declined to their lowest levels since September after demand was seen to be lacking from China amidst the suspension of production in some mills in anticipation of a Beijing summit of world leaders.

Ore with 62% shipped to Qingdao declined by 1.2% yesterday for a price per dry metric ton of $78.63, the lowest since September 30th, based on data from the Metal Bulletin Ltd. The raw material declined during the last two weeks of October and is approaching its lowest value in over five years at $77.97, which it last visited on September 29th.

Iron ore has fallen into a bear market this year with BHP Billiton Ltd., Rio Tinto Group, and Vale SA increasing their supplies and contributing towards a global glut amidst a slowdown in China’s economy. Beijing will be hosting the next Asia Pacific Economic Cooperation (APEC) summit from November 7 to 12, for which officials have ordered factories to suspend their operations in order to clean the city’s polluted air.

The Australia & New Zealand Banking Group Ltd. said earlier today that, “Demand remains weak as Chinese buyers sit on the sidelines, with many Beijing steel mills forced to halt production leading up to the APEC meeting.”

Analyst Daniel Morgan from UBS AG claims that iron ore may bounce back to around $90 per ton by the end of the year due to the buildup in holdings of mills. The metal is seen by Morgan to face downward pressure once again in 2015, however, behind increasing supplies from the biggest miners.