Shares in Chile-based iron ore and steel firm CAP continued their recent slide to hit their lowest price in a decade, on concerns about the outlook for iron ore prices.
Spot iron ore prices have fallen 44 percent this year, hit by a supply glut after low-cost global producers such as Vale and Rio Tinto boosted output.
In tandem, CAP’s shares have more than halved in value since the start of the year. Following a nearly 10 percent drop on Tuesday, they fell a further 3 percent on Wednesday to 4,100 pesos apiece.
Brokers Banchile-Citi revised their price target for the stock down to 3,600 pesos on Tuesday, citing a weak outlook for iron ore prices.
“We estimate that at $65 a tonne, CAP’s iron ore business would have slightly negative core earnings,” they said.