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Your Editor On Switzer: Iron Ore In A Downtrend

FNArena Talks | Apr 08 2014

FNArena Editor Rudi Filapek-Vandyck explained to host Peter Switzer the general dynamics behind typical commodities cycles. The result is now that commodities that have held up well until last year, like iron ore, crude oil and copper, are now facing a weaker pricing environment.

For investors, downward pressure on the price of iron ore can potentially have significant ramifications as the larger (and low cost) producers are trying to muscle out the competition, he explains. For the larger producers it'll be a case of maximising sales and cash flows but sustainable growth will equally become increasingly difficult to achieve.

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