Some industry watchers expect the price of iron ore in the global market to remain weak in the coming months after rising during Jan-Mar 2013.
Iron ore price is expected to be weak because of a combination of anticipated lower steel output and continuous supply growth from the major iron ore miners, consulting firm KMPG said.
The price of iron ore may fall also because of an anticipated high level of the global seaborne export volumes.
Consequently, the average consensus prices are expected to moderate, with price expected to be $124 per tonne in 2013, $115 per tonne in 2014 and $105 per tonne in 2016.
In the longer term, the same themes still exist in the iron ore market with execution on supply projects continuing to disappoint and increased expectation from Chinese iron ore imports required to balance the global sea borne markets.
But analysts also expect ore production from two of the major iron ore producing regions in the world to fall in 2013 owing to regulatory and political uncertainty in those regions.
Production and exports of iron ore from India may decline in 2013 because of continued restriction on illegal mining.
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