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World Bank remains pessimistic on iron ore prices

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Bali) - The World Bank's quarterly Commodity Markets Outlook, published today, notes that Iron ore prices are likely to post the biggest loss among metals this year.

    Key headlines

    Low-cost supply continues to outstrip consumption

    Iron ore demand is nearing its peak

    Prices will average $42 a metric ton in 2016 (In October, the bank had forecast 2016 iron ore prices at $59.50.), a drop of 25 percent from $55.80 last year

    Cut its 2017 estimate for iron ore by 28 percent to $44.10 a ton

    Says prices will remain below $50 through 2019 before rising to $51 at the end of the decade

    Nickel forecast to fall by 16 percent and copper by 9 percent

    Global seaborne iron ore demand may be nearing a peak due to China's transition to a less-metal intensive economy

    New low-cost iron ore capacity continues to come online in Australia and Brazil, and is forcing closures of higher-cost mines in China and elsewhere.
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