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Economy

Australia: Iron ore price prospect increased by 9%

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L.Byambadorj
2016-04-14
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Last Monday, iron ore price reached $55.9 per metric tonne at Tianjin port, China.

Also world's leading iron ore exporter Australian government increased the previously forecasted iron ore price on their raw material market report by 9 percent to $45. As result, Australian government predicts iron ore price will go up to $56 per/tonne next year, and $60 per/tonne in 2018. The report also indicated overpricing effect due to closing of some high-cost minings outside Australia, but new low-cost minings in Australia and Brasil will restrain this overpricing.

Although Australian government increased their iron ore price prospect, they see no change in China's low growth demand. But Australian government renders it will change when China's high-cost, unprofitable mines contracts, resulting increase in international trade. Furthermore, world iron ore trade is project for 1.3 percent growth per year between 2015-2021 and reach 1.6 billion tonnes.

Vale, one of the top mining company, reported yesterday that in the long-term iron ore price per tonne is expected to stay around $65-80.

Source: mongolianminingjournal.com

Last Monday, iron ore price reached $55.9 per metric tonne at Tianjin port, China.

Also world's leading iron ore exporter Australian government increased the previously forecasted iron ore price on their raw material market report by 9 percent to $45. As result, Australian government predicts iron ore price will go up to $56 per/tonne next year, and $60 per/tonne in 2018. The report also indicated overpricing effect due to closing of some high-cost minings outside Australia, but new low-cost minings in Australia and Brasil will restrain this overpricing.

Although Australian government increased their iron ore price prospect, they see no change in China's low growth demand. But Australian government renders it will change when China's high-cost, unprofitable mines contracts, resulting increase in international trade. Furthermore, world iron ore trade is project for 1.3 percent growth per year between 2015-2021 and reach 1.6 billion tonnes.

Vale, one of the top mining company, reported yesterday that in the long-term iron ore price per tonne is expected to stay around $65-80.

Source: mongolianminingjournal.com

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Сэтгүүлч L.Byambadorj
L.Byambadorj
Category
Economy
Published
2016-04-14


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