Iron Ore Seen Slumping for Years After Hitting February Peak
- Fitch Group unit BMI projects lower prices through to 2021
- There’ll be ‘no rebound to February highs,’ researcher says
Wood Mackenzie's Griffin on Iron Ore Outlook
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Iron ore’s surprise early-year rally that neared $100 a metric ton at its peak will probably represent the commodity’s high-water mark for at least the next half decade, according to BMI Research, which projects that prices will average lower each year through to 2021.
The commodity will drop to $70 a ton this year, $55 in 2018, and slump to $46 by 2021, according to the research arm of Fitch Group, which cited rising supplies from Australia and Brazil and expectations for a surplus. Major producers, backed by low costs, will boost output, BMI said in a report.