Banks Analysts Predict Iron Ore Price to Plunge by US$10

Mining Australia reported that both the Australia and New Zealand Bank and Goldman Sachs expect the iron ore p[rice to drop at least US$10 per tonnes.

As quoted in the market news:

Benchmark iron ore for immediate delivery to the port of Tianjin in China was last trading at $US60.60 per tonne, but analysts are predicting a fall. ANZ says the commodity is likely to fetch $US53 per tonne in coming months, while Goldman Sachs was even more bearish, stating iron ore will average $US49 a tonne in the third quarter.

It has been a tumultuous year for the commodity which has seen it fall and rise amid volatility in the market. Iron ore entered 2015 valued at $US71.26 per tonne after a horror 2014 which saw it lose 47 per cent of its value. But the price soon started to head south at a pace no one accounted for.

By April 2, iron ore was trading at a record low of $US46.70 per tonne, forcing companies to mothball operations and cut thousands of jobs. In the same month, from April 16, iron ore made a 33 per cent rally which saw it rise above $US60 per tonne again.

Click here to read the full Mining Australia report.