Iron ore stocks slide as prices extend losses
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The news: Fortescue led a sell-off in iron ore stocks in morning trade on the ASX, as iron ore futures extended losses from last week.
The numbers: Fortescue (-3.3%), BHP (-1.2%), Rio Tinto (-1.1%) and Champion Iron (-0.3%) were all trading lower by midday AEDT.
Materials was the second worst performing sector, down 1% as the wider market fell 0.3%
Singapore iron ore futures were down 0.41% to USD102.90 ($160.92) per tonne.
The context: Iron ore futures fell last week after Gustavo Pimenta, chief executive of the world's second largest supplier of iron ore Vale, outlined plans to offer more lower quality iron ore amid ongoing challenges in the market, Bloomberg reported.
Pimeta said that the Brazilian company needs to adapt to current market conditions by becoming a more flexible support, and not only provide high-grade steelmaking material.
However, investors are expecting Chinese authorities to offer fresh stimulus at the government's Central Economic Work Conference this week, which may provide further support to the country's property sector and bolster the outlook for iron ore.
