ANZ Cuts Iron Ore Price Outlook

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.

Click here for the full Australian Mining report