UPDATE 2-Iron ore sinks to record low as Rio comment stokes glut worries

viernes 27 de marzo de 2015 08:43 GYT

* Rio dismisses Fortescue's call for iron ore output cap

* Piles more pressure on spot iron ore, now below $55/T

* Shanghai rebar also hits record low, but cuts losses (Updates spot price)

By Manolo Serapio Jr

SINGAPORE, March 27 (Reuters) - Spot iron ore prices hit new record lows on Friday while futures in China and Singapore slid as much as 4 percent before paring losses, on worries that global producers would continue to lift output in a well supplied market.

Iron ore prices on China's Dalian Commodity Exchange hit the daily floor set by the bourse, touching a new all-time low and creating further downside risk for spot values that this week fell to their lowest since records began in 2008.

The head of Rio Tinto , the world's second-largest iron ore miner, on Thursday dismissed as "harebrained" a suggestion by smaller rival Fortescue Metals Group that miners should cap output of the steelmaking material to boost prices.

"Rio Tinto's reaction definitely hit the market as it has no intention of cutting output in order to lift prices," said Li Wenjing, analyst at Industrial Futures in Shanghai.

"Fortescue is already standing on the edge of its breakeven price. And most domestic mills are losing money at this level as well."   Continuación...