Iron Ore Price Expected to Slump in 2016

Mining Australia reported that analysts are predicting iron ore prices to slump further in 2016 as new projects like Roy Hill come online and begin full production.
As quoted in the market news:

Weak demand growth in China and a stronger US dollar will ensure iron ore prices stay down, according to BMI Research.
A report from BMI stated that investors expect the commodity to trade between $US50-60 per tonne for the rest of 2015, dropping again to the $US45-55 range in 2016.
Market shares held by BHP, Rio Tinto and Brazilian major Vale have increased low-cost ore supplies, however China’s steel consumption will contract by 1.3 per cent each year up to 2019, BMI said.
“Global iron ore majors will continue to ramp up production to squeeze out higher-cost competitors,” BMI said.
“BHP Billiton, Rio Tinto and Vale all reported record output in 2014 and will increase output further in the quarters ahead.”
New shipments from Hancock Prospecting’s Roy Hill Project were also flagged to contribute to an increasingly apparent glut of the steel-making commodity, with productivity to increase over the next year to full capacity.

Click here to read the full Mining Australia report.