China, Australia to Talk Iron Ore Demand as BHP, Rio Drive Glut
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Australia’s Treasurer Joe Hockey plans to discuss iron ore demand with his Chinese counterpart after rising output from BHP Billiton Ltd. and Rio Tinto Group helped drive the metal’s price below $50 a metric ton this month.
Australia, the world’s biggest supplier, is contemplating a price as low as $35 in next month’s budget, while Citigroup Inc. and UBS Group AG cut forecasts in response to higher production and weaker demand from China, the biggest consumer. The slump is eroding tax revenues and forcing smaller miners to shut, with Atlas Iron Ltd. saying on Friday it’s halting output.