Investment bank Citi said it has cut its iron ore price forecasts for the current year and next year amid expanding supplies. The bank believes that iron ore must fall below $ 45 per tonne for the market to rebalance. Iron ore, which is trading at just under $ 56, is down 41 percent from its peak this year.
“As prices approach $ 50 per tonne, we may see lower output from Russia, Canada and Ukraine. As prices approach $ 45 per tonne, even high-value Australian and Brazilian miners may be under pressure to cut output, ”the report said.
But Citi analysts see additional downside risks, saying they expect more than 100 million tonnes of surplus iron ore this year amid the expansion of top miner Vale in Brazil and the Roy Hill mine in Australia.
Citi lowered its 2017 average price forecast to $ 61 per tonne from $ 70 and to $ 50- $ 53 over the next year.
Citi Bank gives forecast for iron ore prices
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Azovpromstal® 20 June 2017 г. 09:57 |
