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World Bank: All Main Commodity Prices to Fall in 2015
Jul. 23, 2015 09:47AM PST
Base Metals Investing
Mining Weekly reported that the World Bank’s July Commodity Markets Outlook sees prices for all main metals and commodities prices declining in 2015. The bank sees oversupply and weak demand as two factors driving that fall, with iron set to take the worst hit.
Mining Weekly reported that the World Bank’s July Commodity Markets Outlook sees prices for all main metals and commodities prices declining in 2015. The bank sees oversupply and weak demand as two factors driving that fall, with iron set to take the worst hit.
As quoted in the publication:
The July Commodity Markets Outlook is particularly pessimistic on the outlook for metals prices, which are now projected to decline 17%, instead of the 12% forecast in April; a result of capacity increases and slowing Chinese demand.
The largest decline is expected for iron-ore, where a 46% slump is anticipated, owing to new low-cost mining capacity coming online, mainly in Australia.
BHP Billiton reported a 13% increase in iron-ore production to a record 254-million tons for the year to June 30, while South Africa’s leading iron-ore producer Kumba Iron Ore has indicted that it is targeting a break-even cash iron-ore price of $45/t, with prices having fallen to around $50/t.
