A steady lift of supply from Australia and a moderation in demand growth from China will put pressure on the number one steelmaking input over the next three to five years, analysts say.
“Prices will slump as much as 34 percent to $90 a ton by the end of December, according to the median of seven analyst estimates compiled by Bloomberg.”
““It’s a double whammy,” said Daniel Hynes, the Sydney- based head of commodity strategy at CIMB Group Holdings Bhd., who has covered the market for about a decade.”
Only the lowest cost quartile producers, with distinct product and logistical advantages, are likely to be financed in the near term. See our post: Where is the value in Canadian iron ore?
Article: Phoebe Sedgman, Bloomberg