Outlook for iron ore turns gloomier

Privately owned Beijing coalminer China Kingho Energy has declared its $A71 million bid for Carabella Resources unconditional after securing 17.5% of the Queensland miner's stock, according to The Australian.

China Kingho, through its Wealth Mining subsidiary, yesterday started buying shares on market paying up to 45.5c per share, which is its bid price.

Hanlong insider trading fugitive arrested in Hong Kong

Steven Xiao, the former Hanlong Group executive who fled Australia after being arrested on insider trading charges, has been arrested in Hong Kong, according to The Australian.

Xiao appeared in Hong Kong's Eastern Magistrates Court yesterday morning after being arrested on Sunday night.

Xiao was part of a syndicate of Hanlong executives who carried out a series of insider trades connected to Hanlong's takeover bids for Sundance Resources and Bannerman Resources.

Calvin Zhu, Hanlong's former chief investment officer, was sentenced to two years and three months jail for his role in the scheme.

Outlook for iron ore turns gloomier

Analysts are lowering their iron ore price forecasts amid seasonal weakness in steel demand, higher port inventories and growing seaborne supply, according to the Sydney Morning Herald.

The iron ore price has eased slightly since the start of the year, with spot prices softening on higher inventories at ports and slowing crude steel output, Commonwealth Bank analysts said in a note.

The slowing steel output and weaker steel prices in turn reflected lower winter demand and measures in China to curb pollution from sinter and coke plants, they said.

The iron ore price ended last week at $US130.70 per tonne, its lowest levels in five months, following five straight days of losses.