Goldman Sachs Still Bearish on Iron Ore, 3 ERA Directors Quit after Rio Cancels Expansion

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The iron ore price recovery looks like it’ll be short-lived and half of the board of an Australian uranium miner quit after their partner company refused to expand.

Chinese Steel Slump

A slump in Chinese demand for steel has poured cold water on a rally in iron ore, with prices for the raw material likely to drop over the rest of the year, traders and analysts said.

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Dwindling stocks at China’s ports suggested tighter supply in a market that had been hit hard by plentiful or, but Goldman Sachs is predicting prices will fall back below $50 a metric ton as lack of demand persists in China.

Half of ERA Board Quits

Half of the board members of Energy Resources of Australia (ERA), the operator of Northern Australia’s Ranger uranium mine, have announced their resignations amid uncertainty over the mine’s future.

Three members remain on the board after ERA chairman Peter McMahon and independent non-executive directors Helen Garnett and David Smith stepped down over the weekend. The board members said majority owner Rio Tinto Group‘s decision to abandon work on the mine’s expansion. They said the cancellation made it difficult for the company to pursue its goals. ERA’s stock has plunged more than 70% since it said, June 12, that it would not proceed with the final development study for the Ranger 3 Deeps uranium project due to low prices.

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