Iron Ore Gluts Seen Through 2017 on Record Supply: Commodities
This article is for subscribers only.
The seaborne iron ore market is poised for at least four years of expanding gluts as producers from Rio Tinto Group to Vale SA increase supply to a record just as growth in China drops to the slowest pace in a generation.
The surplus will reach 82 million metric tons in 2014, the most since at least 2008, and the glut will keep growing through 2017, according to Goldman Sachs Group Inc. Australia will account for about 66 percent of the supply gains next year, Morgan Stanley says. Iron ore will average $115 a ton in 2014, 19 percent less than now and the least since 2009, according to the median of 10 analyst estimates compiled by Bloomberg.