Economics
Moody's Says Iron Ore to Extend Slump in 2016 on Excess Supplies
- Demand slowing as new production comes online, Cowan says
- Moody's forecasts prices will average $45 a ton next year
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Iron ore’s slump will deepen next year as rising supplies from the biggest producers overwhelm weakening demand in China, according to Moody’s Investors Service.
Prices will probably average $45 a metric ton next year and in 2017, said Carol Cowan, Moody’s senior vice president in New York. So far this year, they have averaged about $58. The glut may expand as the majors boost low-cost output and Gina Rinehart’s Roy Hill mine in Australia begins shipments, Cowan said in an interview on Tuesday.