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BloombergBusiness reported Andy Xie, a Shanghai-based independent economist, has predicted that iron ore prices will drop to $30 per metric ton this year as low-cost supply rises and steel demand in China shrinks.
BloombergBusiness reported Andy Xie, a Shanghai-based independent economist, has predicted that iron ore prices will drop to $30 per metric ton this year as low-cost supply rises and steel demand in China shrinks.
As quoted in the market news:
The raw material used to make steel will probably average $50 this year, a level that he’s predicted since 2012, said Xie, who’s tracked the Chinese economy for more than two decades. Prices need to decline to a level that’s so painful higher-cost Chinese mines will be forced to give up, he said.
Xie stated:
When it peaked at $190, I started talking about a collapse and nobody believed me. We need to see prices much, much lower. It can still go down through $40 before we bounce back.