Top Iron Ore Shipper Warns Price to Go Sub-$50 as Supplies Swell
- Australia forecasts average $49.10 a metric ton for next year
- Port Hedland reports record cargoes for the month of June
Iron Ore Faces Extreme Volatility
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Iron ore will sink back below $50 a metric ton next year as global supply expands and demand moderates in China, according to Australia, the biggest exporter, which released its revised outlook just hours before the country’s largest port reported record shipments for June.
The raw material will average $49.10 next year, 4.8 percent below a previous estimate, and hold near that level in 2019, the Department of Industry, Innovation and Science estimated in a regular quarterly report on Friday. Prices are seen at $62.40 this year, bolstered by demand from China’s steel sector before easing over the next two years, according to the forecaster.