Iron ore set for worst month since May

SHANGHAI/SINGAPORE: Spot iron ore is set to post its biggest monthly fall since May last year as a glut kept the steelmaking commodity at its weakest since 2009.
Iron ore futures in China traded little changed with investors waiting for stronger signals that would point to a pick-up in Chinese steel demand.
“Some investors switched to long positions in the past two days as they expected investment in infrastructure projects could pick up this year, but the gains could not be sustained,” said Li Yajing, a Guangzhou-based analyst at Guangyong Futures.
China plans to spend a further 800 billion yuan ($128.01 billion) on building railway tracks this year after exceeding its 2014 investment target, local media reported on Thursday.
Steel demand in China´s northern regions slows down during winter along with construction activity and some analysts warn the weakness could persist throughout the year as the economy slows further.
China plans to cut its growth target to around 7 percent in 2015, its lowest goal in 11 years, sources said.