Top Iron Ore Forecaster Says Prices Will Sink Back Below $50
- Westpac’s Smirk warns of volatility as mine supplies increase
- ‘The signs are now pushing in one direction,’ economist says
Wood Mackenzie's Griffin on Iron Ore Outlook
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Iron ore is destined to retreat back below $50 a metric ton next year as supplies go on rising, according to the top forecaster, who warned that weakening prices will probably encourage the sale of inventories.
The raw material will drop to average $62 in the third quarter and $59 in the final three months of this year before falling through 2018 to a low of $41, said Justin Smirk, senior economist of Westpac Banking Corp. Westpac placed first in predicting prices in the first quarter, according to data compiled by Bloomberg.