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Australian Mining reported that ANZ has projected a pessimistic outlook for slashed iron ore price forecasts for the next two years as a result of expanded low-cost supply and stagnant demand.
Australian Mining reported that ANZ has projected a pessimistic outlook for slashed iron ore price forecasts for the next two years as a result of expanded low-cost supply and stagnant demand.
As quoted in the market news,
The bank says iron ore will average $US55 a tonne in 2016, down $US5 a tonne on earlier predictions.
In 2017, ANZ expects iron ore will fetch an average of $US60 a tonne, down $US3 a tonne.
ANZ’s head of commodity research, Mark Pervan, stated:
Despite this, we feel fundamentals still look weak. Steel prices have only shown a mildly positive response, and low-cost iron ore supply continues to expand.