Steel, Iron Ore Panic Equals Profits For Hedge Fund Shortsellers

Last week was upsetting for steel and iron ore prices as investors lost further confidence in the strength of the metal industry. Coal also traded low in last month. Both coal and iron ore experienced huge sell offs as Chinese steel producers cut down their production, thus reducing demand for raw materials. Australian iron ore has fallen 30 percent since touching the peak price in February, according to the Steel Index. The Reserve Bank of Australia’s commodities index was down 2.6 percent in May. The central bank estimates that spot prices of iron ore, coking coal and thermal coal fell 5.3 percent…