Singapore — Iron ore is destined to retreat back below $50/tonne in 2018r as supplies go on rising, according to the top forecaster, who warned that weakening prices will probably encourage the sale of inventories. The raw material would drop to average $62 in the third quarter and $59 in the final three months of this year before falling through 2018 to a low of $41, said Justin Smirk, senior economist of Westpac Banking Corporation. Westpac placed first in predicting prices in the first quarter, according to data compiled by Bloomberg. Iron ore was whipsawed last week after hitting an almost six-month low as investors weighed signals of strength in the largest user China, including steel output at a record in March, against prospects for rising supply. Top miners, including Brazil’s Vale, are bringing on new capacity, bolstering seaborne sales, at the same time that miners in China have been reviving production. Smirk said that there had been a huge ramp-up in Chinese supply. "As ...
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