Iron Ore Forecasts Raised by World Bank After China-Led Rally
- Prices advance in the first quarter after `spike in steel'
- Bank says low-cost mine supply still expected to increase
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Iron ore forecasts for the five years through 2020 have been revised higher by the World Bank after the commodity rallied in the first quarter on a surge in steel prices in China, the largest user.
The raw material is expected to trade at $50 a metric ton this year, $51.50 in 2017 and extend gains to $56.20 by 2020, the lender said in its latest quarterly commodities outlook. That compares with forecasts of $42 for this year, $44.10 in 2017 and $51 by 2020, according to the bank’s report in January, when it said it expected iron ore to post the biggest loss among metals this year.