Commodity Traders face High Tide

Iron ore prices have come down to $55 from a year high of $135. Similar is the story with most commodities. Sulphur for example is at $65 from a year high of $700 a tonne, which is a fall of almost 91%. The companies that would be hit the most in terms of margins would include:

• Hy Grade Pellets
• Kudremukh Iron

What probably comes as a bit of a relief is copper and other base metal prices easing up. If the prices of Iron Ore and Sulphur continue to fall then as many as 7000 commodity traders face bankruptcy with a combines losses in excess of Rs 64000 crore.