Economics
BHP Expects Iron Ore to Notch Declines on New Mine Supply
- Prices to fall to middle of BHP’s range, rather than top
- Supply underperformance to reverse next 12-18 months
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BHP Billiton Ltd., the world’s largest mining company, expects iron ore prices to begin retreating as “well-telegraphed” new supply hits the market from Australia and Brazil.
“Some of that supply is late, but we have every confidence it will arrive,” Huw McKay, BHP’s vice president of market analysis and economics, said Friday in an interview in Singapore. “We do expect it will weigh on price from where we are, and we’ll be closer to the middle of the range that we think about, rather at the top of the range, which is where the price is now. ”