Iron-ore tests floor as plunge to $90/t puts mines at risk

Iron-ore’s plunge is about to test the view that the steelmaking material can find solid price support at $90 a ton or more as high-cost mines are nudged out of the market.

Futures in Singapore briefly sank below $90 earlier this week to their lowest in almost two years, as China’s steel slowdown leaves the market awash with too much of the raw material. Prices have slumped by about a third this year, fueling discussion about how low they must go to force mine closures and bring supply back in line with demand.