Miners braced for more woe as demand for iron ore slumps

clock • 4 min read

Investors ask whether falling Chinese housing starts could trigger end of commodity super-cycle.

Managers are swerving sold-off miners on fears the sector will take a further hit this year as Chinese demand for iron ore grinds to a halt. Although mining stocks fell 27.8% in 2011, investors have not been tempted by the cheap valuations as they fear housing starts in China will tumble from last year’s levels. Fidelity’s Aruna Karunathilake, Julie Dean at Cazenove, Kames Capital’s Stephen Adams and Charlie Deptford at Smith & Williamson are bearish on the short-term prospects for miners, holding underweight positions in their portfolios. Housing woes Deptford, who runs the S&W UK ...

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