BHP Joins Rio Tinto in Seeing Iron Ore Price Dropping on Supply
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BHP Billiton Ltd., the world’s third-biggest iron ore exporter, said the price of its most profitable product will likely decline this year as rising supply moves the market into surplus.
“The very strong growth in supply is more than enough to create a bit of an excess and therefore to drive the price lower,” Andrew Mackenzie, chief executive officer of the Melbourne-based company said today on an analyst web cast. “There may be a few ups and down in the next quarter or two, perhaps a little bit of a recovery in that demand but we still see some issues arising from new supply.”