Australia forecasts plummeting iron ore prices amid Chinese demand dip
Sydney — Australia has forecast a steep decline in the price of iron ore, its most valuable export commodity, calling an end to an unexpected rally fuelled by strong demand from China. The forecast average price in 2017 of around $52 a tonne — down from about $80 a tonne at present — comes as big miners are set to report bumper profits in coming months, while smaller rivals are still getting back on their feet. "If the iron ore price starts to go down the high performance of last year won’t be replicated this year," said Shaw & Partners mining analyst Peter O’Connor. "It could be a train wreck for the smaller, marginal producers." In a closely watched release, Australia’s Department of Industry, Innovation and Science on Monday predicted iron ore to average just $51.60 a tonne this year, easing further to $46.70 in 2018. The 2017 forecast was still up from its previous estimate of $44.10, reflecting last year’s rally, and was broadly in line with major banks on doubts that China’s i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.