Australian government forecasting the price of iron ore to remain elevated

Author: Eamonn Sheridan | Category: News

Australia's Department of Industry in its latest assessment of commodity exports, prices. 

  • Expects the price of iron ore to remain high for the next two years
  • Also expects Australia to become the world's largest gold producer
  • Exports of commodities expected to be upwards of 250bn AUD in the year ahead
  • department is effectively predicting a benchmark iron ore price of about $US93 per tonne in mid-2021.

Further:
  • expects continued disruption to Brazil's ability to supply iron ore 
  • ''Significant growth in Brazilian short term supply remains unlikely due to the wider problems of COVID-19 across the Brazilian economy''
  • ''The main risk to prices is thus on the demand side.''
  • The department predicted iron ore would hold around $US100 a tonne "over coming months" and would gradually decline to be closer to $US85 a tonne by June 2021.



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