Arab Today, arab today australia lowers iron ore price forecast as china outlook softens
Last Updated : GMT 16:31:58
Arab Today, arab today
Arab Today, arab today

Australia lowers iron ore price forecast as China outlook softens

Arab Today, arab today

Arab Today, arab today Australia lowers iron ore price forecast as China outlook softens

Iron ore is transported at a port in Rizhao
Sydney - AFP

 Leading global producer Australia on Tuesday lowered its forecast for iron ore prices as Chinese steel production eases, but said export volumes were expected to grow as suppliers ramp up output.

The price was forecast to fall to US$54.40 a tonne for this year and slip to US$52.10 in 2016 as China's output of steel, of which the commodity is a key ingredient, weakens, Australia's Department of Industry and Science said in a quarterly report.

"China's steel production is forecast to contract in 2015 and 2016 as the seaborne supply of iron ore increases," the report said.

"These factors are forecast to drive the price of iron ore down 38 percent in 2015... and a further 4.2 percent in 2016."

Australia's revenue has taken a hit as the price of ore, its largest export, dived by 60 percent over the past year to reach a decade low of US$47.08 per tonne in early April. It is currently about US$60 a tonne.

Increased supply by miners such as BHP Billiton and Rio Tinto as well as softer growth in Chinese demand have been blamed for the tumbling ore price, which has intensified pressure on smaller miners with higher production costs.

The latest forecasts are down from the US$60.40 a tonne and US$56.80 a tonne projections in the department's March quarterly outlook.

"Housing construction in China remains a key area of uncertainty," the report said.

"Although residential construction is forecast to remain moribund through 2015 and into 2016 a rebound in activity could significantly boost domestic steel consumption and demand for seaborne iron ore."

China's property sector has been a key part of the nation's economic boom in recent years, driving demand for materials such as steel.

The department said Australia's iron ore exports were forecast to increase by four percent this year to 748 tonnes as suppliers ramp up output from the Pilbara in Western Australia.

Supply is also expected to be boosted by initial production from Hancock Prospecting's massive Roy Hill mine.

Exports of the commodity from Australia were projected to jump by 10 percent in 2016 to 824 tonnes, the report added.

Brazil's iron ore exports were forecast to rise by seven percent this year to 390 tonnes amid infrastructure expansions and increased production.

But exports from countries such as South Africa, Ukraine and Canada were expected to fall in the short-term as infrastructure constraints, lower-grade ore and declining prices hit profitability.

Australia's iron ore exports account for 60 percent of the world's seaborne supply.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today australia lowers iron ore price forecast as china outlook softens Arab Today, arab today australia lowers iron ore price forecast as china outlook softens

 



Arab Today, arab today
Arab Today, arab today Laptop ban sparks ire

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today AT&T, Verizon join Google ad boycott

GMT 10:30 2017 Thursday ,23 March

AT&T, Verizon join Google ad boycott
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemeni official warns education is under threat

GMT 12:03 2017 Tuesday ,14 March

Yemeni official warns education is under threat
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Donia Abdel Aziz participates in "Game of Silence"

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"
Arab Today, arab today Mexico threatens to ditch US corn imports

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 07:39 2017 Monday ,20 March

Dalia Mustafa believes in the presence of ghosts

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection

GMT 16:41 2017 Monday ,20 March

Preserving the memory of glaciers

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 13:11 2017 Tuesday ,21 March

Web-based counseling lowers blood pressure

GMT 10:18 2017 Tuesday ,21 March

Kuwait's tourism industry to be worth

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 22:39 2017 Thursday ,09 March

Zuhair Murad presents his new collection "Resorts"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday