First, iron-ore hit $100 a ton, then it raced straight to $110, and now spot prices are well north of $120: the commodity’s rally has been so strong it’s triggering warnings that the gains have taken the market beyond fundamental drivers and prices are likely set for a pullback. Futures tanked. “Prices are disconnected from fundamentals at the moment,” CRU Group senior analyst Erik Hedborg said in an interview from London, citing improving global supply and expectations that mainland steel consumption may soften. “We are rather bearish on Chinese steel demand for the second half.”
