Fund manager Mark Mobius. Source: Financial Times Youtube screen grab

Executive chairman of Templeton Emerging Markets Group, Mark Mobius, said on Monday that iron-ore’s volatility is due to speculative traders and that supply-demand is stable:

“We’ve got to separate those two things… Supply-demand is one thing, price is another thing. Because the price is subject to all kinds of external factors, and the traders who are betting on the price going up or down or so forth…

I don’t see a big, big decline in the demand for iron ore going forward, I think there’ll be continuing demand not only in China but other parts of the world… If you look at Chinese imports of iron ore, it’s almost a straight line, continuing to go up…

There may be a slowdown in demand from the housing sector but the infrastructure sector will still be sustained… If the One Belt, One Road program proceeds, there’ll be continuing demand.”

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