BHP Says Iron Ore Prices Will Decline in Coming Years

Reuters reported that BHP Billiton said the prices of iron ore will decline over the next few years as major iron ore companies have plans to boost production by 2015 and demand from China weakens.

As quoted in the market news:

 The three miners plan to add a combined 235 million tonnes of new mine capacity by 2015, a figure almost equivalent to Rio’s total output last year.

Purchases from China, the largest buyer of iron ore from Australia, are expected to decline over the next few years as the economic growth rates slow, BHP’s Chief Financial Officer Graham Kerr said.

Click here to read the full Reuters report.