Iron Ore Prices to Remain Low For the Fourth Quarter

Mining Weekly reported that iron ore prices are expected to remain suppressed until the end of the year as supplies continue to increase and winter begins in the northern hemisphere.
As quoted in the market news:

While iron-ore prices were projected to rebound in the medium term as higher-cost producers exited the market and world steel production growth rebounded, the increased supply, predominantly from Australia, was forecast to drive down the 2015 and 2016 prices in the seaborne market.
In its latest Resources and Energy Quarterly report, the Department of Industry, Innovation and Science noted that, as a whole, iron-ore prices were forecast to reach $53/t free-on-board in 2015, down 40% on the 2014 average. C
hief economist Mark Cully noted that while current market conditions were challenging, demand for Australia’s resources and energy commodities over the medium to long term were projected to increase owing to growing consumption in developing nations. Cully said this expectation was based largely on increasing urbanisation and the expansion of manufacturing in emerging, highly populated Asian economies.

Click here to read the full Mining Weekly report.