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27 Jan 2016
World Bank remains pessimistic on iron ore prices
FXStreet (Bali) - The World Bank's quarterly Commodity Markets Outlook, published today, notes that Iron ore prices are likely to post the biggest loss among metals this year.
Key headlines
Low-cost supply continues to outstrip consumption
Iron ore demand is nearing its peak
Prices will average $42 a metric ton in 2016 (In October, the bank had forecast 2016 iron ore prices at $59.50.), a drop of 25 percent from $55.80 last year
Cut its 2017 estimate for iron ore by 28 percent to $44.10 a ton
Says prices will remain below $50 through 2019 before rising to $51 at the end of the decade
Nickel forecast to fall by 16 percent and copper by 9 percent
Global seaborne iron ore demand may be nearing a peak due to China's transition to a less-metal intensive economy
New low-cost iron ore capacity continues to come online in Australia and Brazil, and is forcing closures of higher-cost mines in China and elsewhere.
Key headlines
Low-cost supply continues to outstrip consumption
Iron ore demand is nearing its peak
Prices will average $42 a metric ton in 2016 (In October, the bank had forecast 2016 iron ore prices at $59.50.), a drop of 25 percent from $55.80 last year
Cut its 2017 estimate for iron ore by 28 percent to $44.10 a ton
Says prices will remain below $50 through 2019 before rising to $51 at the end of the decade
Nickel forecast to fall by 16 percent and copper by 9 percent
Global seaborne iron ore demand may be nearing a peak due to China's transition to a less-metal intensive economy
New low-cost iron ore capacity continues to come online in Australia and Brazil, and is forcing closures of higher-cost mines in China and elsewhere.